Taking greater role, China leader pledges $2bn to aid poor nations

China President Xi Jinping arrives to speak at the United Nations Sustainable Development Summit during the United Nations General Assembly in New York on September 26, 2015. He said that China will also set up an Academy of South-South Cooperation and Development, and provide $2 million of aid in cash for the World Health Organisation. PHOTO | TIMOTHY A. CLARY | AFP

What you need to know:

  • The “Six 100s” initiative, declared at a South-South cooperation roundtable President Jinping hosted, covers poverty reduction, agriculture, trade, environment, health and education.
  • The Chinese leader said that his country would step up investment in the least developed countries — which are mostly in Africa — by at least $12 billion by 2030.
  • China’s economy has soared over the past 15 years to become the world’s second largest after the United States, although concerns have been rising in recent months over the country’s financial markets and long-term growth.

UNITED NATIONS

Chinese President Xi Jinping announced here Saturday a major initiative to help developing countries reduce poverty

The “Six 100s” initiative, declared at a South-South cooperation roundtable President Jinping hosted, covers poverty reduction, agriculture, trade, environment, health and education.

China, he said in an address, will make available to developing countries in the next five years 100 poverty reduction programmes, 100 agricultural cooperation projects, 100 trade promotion programmes, 100 environment protection and climate change programmes, 100 hospitals and clinics, as well as 100 schools and vocational training centres.

Also during the period, Beijing will provide 120,000 opportunities and 150,000 scholarships for citizens of developing countries to receive training and education in China, and help nurture 500,000 professional technicians for the developing world, President Xi added.

China, said the president, will also set up an Academy of South-South Cooperation and Development, and provide $2 million of aid in cash for the World Health Organisation.

STEPPING UP INVESTMENT
The Chinese leader said that his country would step up investment in the least developed countries — which are mostly in Africa — by at least $12 billion by 2030.

China has been an increasingly active investor around the world, although it has generally focused on seeking resources rather than broader humanitarian goals.

Mr Xi said that China would also relieve debts owed by least developed countries this year. He did not provide a figure on the debts or say which countries would be affected.

Mr Xi is in New York for his appearance at the UN headquarters after concluding his first state visit to the United States. Earlier Saturday, he addressed the United Nations Sustainable Development Summit and called for an equitable, open, all-round and innovation-driven development path.

For effective implementation of the post-2015 development agenda, Mr Xi made a four-point proposal: building up development capacities; improving the international development environment; updating development partnerships, and strengthening development coordination mechanisms.

SOARING ECONOMY
Addressing a UN summit on development, Mr Xi said China would act “by putting justice before interests and joining other countries in a concerted effort to realise the post-2015 agenda.”

The United Nations on Friday set a goal of ending extreme poverty by 2030, an effort that the global body says could require up to $5 trillion a year.

Ugandan President Yoweri Museveni urged Mr Xi to encourage Chinese companies to invest in Africa and to open up the Chinese market to African goods as the best way to promote economic development.

He then added a third, concrete request.

“Tourists. If you could send me just two million of those, I’ll be very happy,” the Ugandan leader said, drawing applause.

In January, Mr Xi promised $250 billion in investment over 10 years in Latin America, which the United States has long considered its sphere of influence.

China’s economy has soared over the past 15 years to become the world’s second largest after the United States, although concerns have been rising in recent months over the country’s financial markets and long-term growth.

A NEW LENDER
China has increasingly taken an assertive role in the world, especially in myriad disputes with its neighbours, but retains little stake in the World Bank and International Monetary Fund.

With a reform plan for the Washington-based institutions blocked by US Republican lawmakers, China has set up its own lender, the Asian Infrastructure Investment Bank.

The bank, which Mr Xi reaffirmed would open soon, has widely been seen as a way for China to dilute the influence of the United States and Japan, the most prominent holdouts from the new lender.