China

Photo of Emily Steele with a group of Chinese people, all smiling

Emily Steele (in red), an Australian Youth Ambassador for Development, on an HIV/AIDS prevention rally, part of the Bazhong Rural Health Improvement Project. Photo by Emily Steele.

Country program estimate 2011–12: $22.5 million
Total Official Development Assistance (ODA) estimated for 2011–12: $35.7 million

Australia's aid program in China focuses on governance, environment and health. The aid program also supports China's reform agenda through policy engagement, high–level capacity building and institutional partnerships.

Country overview

China has greatly improved the quality of life of its people, having lifted over 500 million out of poverty. China's economic reform and opening up since 1978 has been the main vehicle for this progress. It has involved the ongoing transition to a market economy, encompassing reforms in the financial system, state-owned enterprises and the government structure, as well as key resource sectors. The successes of the last thirty years have made a tangible positive difference to the lives of hundreds of millions of people in China.

Development challenges

Despite transforming itself into one of the world's largest economies and having lifted some 500 million people out of poverty, China faces ongoing poverty challenges, many of which relate to unbalanced development. China still has the world's second largest number of poor people(after India). According to the World Bank (2009), more than 250 million Chinese still live on less than US$1.25 per day. China's remaining poor are widely dispersed and hard to reach. Income inequality is increasing and over 200 million migrant workers have very restricted access to basic services in the urban areas where they live and work. Environmental challenges continue to constrain economic growth and public health, despite advances in areas such as pollution control and water management. More balanced development requires comprehensive structural, institutional and legal reform, complemented by improvements in basic service delivery.

As an international power and driver of regional and global economic growth, China has unequalled potential to catalyse development in the Asia–Pacific region and contribute to global achievement of the Millennium Development Goals. China's growing influence on international development, including as a donor, underscores the importance of engaging China on these issues.

Australia's aid program

Australian Official Development Assistance to China represents less than one per cent of the Australian total aid budget. The objectives of the 2006–2010 China Country Program Strategy are:

to support China's policy reform agenda in governance, environment and health
to build capacity in selected sectors in China, in particular governance, environment and health
to enhance the Australia–China relationship by building institutional linkages, and
to work collaboratively with China to strengthen the region.

The strategy has guided a shift in the focus of Australian development cooperation from local level poverty alleviation projects to national level policy engagement. The program is now centred around three funding facilities that work with China's national ministries and through them, provincial and sub–provincial authorities.

In governance, up until Octobeer 2010, the China–Australia Governance Program supports China's governance reform agenda in fiscal reform, balanced rural–urban development and social security for migrant workers. In addition, the Australia–China Human Rights Technical Cooperation Program (HRTC) works with Chinese government agencies and NGOs to promote women's and children's rights, ethnic and minority rights, and legal and judicial reform.

In health, the China Australia Health and HIV/AIDS Facility works through the Chinese Ministry of Health to address health system reform priorities and to protect the population against HIV/AIDs and emerging infectious diseases. Facility activities are directly supporting China's top five reform priorities for the next three years. Through the Tibet Health Sector Support Program, Australia is also the leading health donor in Tibet.

In environment, the Australia China Environment Development Partnership works with four Chinese ministries to help China improve its environmental protection and natural resources management, particularly in relation to water.

Useful websites

Last reviewed: 10 May 2011