The Strategic Relationship Between Chinese Loan Disbursement and Developing Countries

This research examines the determinants of China's loan disbursement in developing countries, where existing study emphasizes economic and political interests as a motivating factor. Drawing on the theoretical insights of scholars that highlight the political motivations as the driving factor behind China's financial assistance. The study investigates the relationship between countries diverging from United States foreign policy and the increasing trend in Chinese loan disbursements in developing countries. The study posits that developing countries' shifts in the foreign policy position from the United States serve as credible signals to China, incentivizing loan disbursement. The findings support the main hypothesis, indicating a correlation between divergence from United States foreign policy and Chinese loan disbursements. Furthermore, these results reveal the strategic behavior China adopts in order to achieve its political interest.

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