China promised the Philippines billions in development aid. Why did it fall so short?
New study shows China disbursed US$700 million out of a promised US$30.5 billion, with analysts blaming political tensions for the gap
Of the total pledged, just US$700 million was actually disbursed – a shortfall analysts attribute to derailed infrastructure projects, changing political winds in Manila and rising tensions with Beijing. These factors have not only stalled flagship ventures under the Belt and Road Initiative but also cast doubt on the long-term viability of Chinese development finance in the region.
The report by the Sydney-based Lowy Institute, released on Sunday, found that while the Philippines received the highest total commitment from China among Southeast Asian nations, it ranked near the bottom in actual disbursements.
Indonesia, by contrast, received and spent US$20.3 billion out of the US$20.7 billion Beijing had pledged, mostly on energy and transport projects.
