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Australia PM denies closer Japan ties hurt China relations
by Staff Writers
Sydney (AFP) July 10, 2014


China gave $14.4 bln in foreign aid in three years
Beijing (AFP) July 10, 2014 - China, the world's second-largest economy after a decades-long boom, provided a total of 89.3 billion yuan (now $14.4 billion) in foreign aid in the three years to 2012, it said Thursday.

The assistance, in the form of grants, interest-free loans and concessional loans, went to 121 countries -- 12 of them in Europe -- the State Council, China's Cabinet, said in a report.

The total amounts to 0.06 percent of China's combined GDP of 139 trillion yuan over the period, far below the 0.7 percent of GNP target proclaimed by the UN for developed nations.

The US, which has an economy almost twice the size of China's, provided a total of $31.2 billion in economic assistance during fiscal year 2012 alone, according to figures on the website of the United States Agency for International Development.

The State Council did not specify which European countries received aid from Beijing.

Of the others, 51 were in Africa, 30 in Asia, 19 in Latin America and the Caribbean, and nine in Oceania, the report said. Regional organisations, including the African Union, also received aid, it added.

It emphasised that China does not tie any "political conditions" to its assistance or interfere in recipient nations' internal affairs.

The report stressed that China's foreign aid has been growing in recent years, though provided no direct comparative figures.

A previous report said that by the end of 2009, China had provided a total of 256.3 billion yuan in aid to foreign countries.

The report does not cover aid provided last year when China was criticised after offering the Philippines -- with which it is embroiled in a longstanding row over islands in the South China Sea -- what was seen as paltry assistance after the devastation wreaked by Typhoon Haiyan.

Beijing initially announced a $100,000 cash donation with a matching one from the Chinese Red Cross -- substantially below the aid provided by the charitable foundation of Swedish furniture store IKEA, though it soon said another 10 million yuan for relief was in the pipeline.

Concessional loans, which the State Council described as including "large and medium-sized infrastructure projects", accounted for the lion's share of China's assistance during the three-year period at 55.7 percent.

Grants made up 36.2 percent of the total, while interest-free loans accounted for 8.1 percent, the report said.

Prime Minister Tony Abbott on Thursday said Australia's closer ties with Tokyo would not hurt relations with China after a successful and productive visit by Japanese Prime Minister Shinzo Abe.

During Abe's two-day trip, in which he became the first Japanese leader to address the Australian parliament, major free trade and security deals were sealed, including the sharing of defence technology.

China is Australia's biggest trading partner and has been restrained in any reaction, although its state media hit out at Abbott's "appalling" speech to parliament.

During the address, he honoured the courage of Japanese submariners during World War II.

Abbott, who repeatedly during Abe's trip referred to their "special" relationship, said there was room for bilateral ties with both Japan and China to blossom.

"The point I make is that when it comes to international friendships, it is not a zero sum game. It is possible to strengthen a range of friendships simultaneously," he said when asked by reporters if ties with Beijing had been hurt.

"We want a better friendship with Japan, and I think pretty obviously we are getting that, but we also want a better friendship with China.

"We are working on a free trade deal with China, I am still reasonably optimistic we will succeed there. We want better friendships with everyone," he added.

His comments came as Foreign Minister Julie Bishop said Australia was not afraid to stand up to China to defend peace and the rule of law.

"China doesn't respect weakness," she said in an interview with the Sydney Morning Herald Thursday.

"So, when something affects our national interest then we should make it very clear about where we stand."

This tougher stance was on display most recently last month when Canberra backed comments by the United States accusing China of "destabilising" actions in the South China Sea, where it is involved in territorial disputes.

Bishop herself earned the ire of Beijing last November when she called in China's ambassador over the sudden announcement of an air defence identification zone over the East China Sea.

An angry China at the time said Australia risked "jeopardising bilateral mutual trust".

Abbott said Bishop's comments Thursday were "just reiterating what is the common sense position that every country has positions".

"Sometimes countries disagree, but it is possible to have respectful disagreements that don't in any way prejudice the friendship," he said.

Abe left Australia on Thursday for Papua New Guinea, a Pacific nation emerging as an energy source for Japan.

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