In 2023, UK government departments allocated £8.2 million towards initiatives aimed at fostering relations with China, despite the growing strain between the two nations and concerns over transparency, as highlighted by a watchdog. This funding supported various projects, including scholarships for Chinese students under the Chevening program and efforts to combat deforestation.
This expenditure is anticipated to decrease to £7.1 million in the following year, according to the Independent Commission for Aid Impact. In a significant move in 2021, the Foreign Office announced a 95% reduction in its aid budget for China-focused programs. However, the Independent Commission for Aid Impact has indicated that aid levels are expected to stabilize near current figures as long as China qualifies for Official Development Assistance (ODA).
The decision to continue financial aid to China has sparked criticism from MPs and activists, urging the Foreign Office to adopt a firmer stance. Sarah Champion, chair of the Commons International Development Committee, criticized the government’s slow progress in ceasing financial support to China. Luke de Pulford, from the Inter-Parliamentary Alliance on China, questioned the rationale behind providing development assistance to a nation whose economy is significantly larger than the UK’s and which has invested heavily in expanding its global influence through initiatives like the Belt and Road Initiative.
Layla Moran, the Liberal Democrats’ foreign affairs spokesperson, expressed deep concern over the UK’s continued financial involvement in China, especially when such funds are desperately needed in other parts of the world. She called for an immediate halt to this spending.
The Independent Commission for Aid Impact also raised issues regarding the opacity surrounding the administrative costs associated with running aid programs and other developmental activities. In 2022, the Foreign, Commonwealth & Development Office (FCDO) spent £4 million on administrative costs, double the amount allocated to aid program delivery.
Sir Hugh Bayley, the commissioner who led the report, emphasized the need for greater transparency in how UK taxpayer money is utilized in China. He also expressed concerns over the increasing ‘administration costs’ charged to the aid budget, which can amount to millions of pounds. With China soon becoming ineligible for aid, Bayley stressed the importance of the UK government devising a strategic plan for this transition, ensuring continued dialogue on critical global issues like climate change.
An FCDO spokesperson clarified that no direct aid or funding is provided to the Chinese authorities, with funds strictly allocated to programs that align with British values on open societies and human rights. They noted that direct aid to the Chinese Government ceased in 2011, and the FCDO committed to a 95% cut in ODA-funded programs in China from the 2021-22 financial year. The spokesperson affirmed the FCDO’s commitment to transparency and its ongoing collaboration with the Independent Commission for Aid Impact to ensure UK aid spending upholds high standards of transparency and achieves maximum impact.