CHINA TOPIX

05/09/2024 08:43:35 am

Make CT Your Homepage

U.S. Sending Millions of Taxpayers’ Money as Aid to China: Watchdog

A U.S. Flag is displayed in front of the Capitol during a Flag Ceremony in Washington, November 2, 2010.

(Photo : REUTERS/MOLLY RILEY) A U.S. Flag is displayed in front of the Capitol during a Flag Ceremony in Washington, November 2, 2010.

The watchdog ForeignAssistance.gov is questioning the dubious spending pattern of the U.S. federal government, particularly its allotment of $50 billion annually as foreign aid to several nations. The question arises since the U.S. itself is deeply mired in debt to the tune of $1.3 trillion.

Like Us on Facebook

Yet, for 2015, Washington has allotted $6.8 million for China, while in 2014, the U.S. State Department and USAID allocated $12.3 million aid for the Asian giant.

The financial aid is for Beijing's pollution and pro-democracy programs, ironically given by the deeply indebted largest economy to the second-largest economy.

Ian Vasquez, director of the think tank Center for Global Liberty and Prosperity, said, "The idea that China needs this foreign aid, and that it can make any difference in China, is laughable," quotes Washington Times.

He said what is happening in reality is that Washington borrows from Beijing, gives back part of the money to China, making it a loan with interest. Vasquez points out that it is a costly way to do business.

The daily mocked the practice by awarding the State Department and USAID the Golden Hammer award, which it gives out weekly to examples of dubious federal spending.

But USAID defends the donation, saying the money funds programs in Tibet, an unrecognized state in China. Tibet sought $7 million, but USAID will only send $4.5 million, the agency's spokeswoman said.

The assistance will fund livelihood programs, promote sustainable development and environmental conservation and preserve Tibet's threatened cultural traditions, USAID explains.

It adds that the money don't go to the Chinese government but to NGOs and U.S. educational institutions in China.

Derek Scissors, a resident scholar of the American Enterprise Institute, believes it's okay to have deals with China if it benefits Americans such as foreign direct investments in the U.S.

However, it is another matter if the deal involves American taxpayers giving money to a nation that isn't poor and is even considered uncooperative partner since China still has a lot of policies that harm the U.S. economy.

He emphasizes, "We're not talking about sanctioning them, we're talking about not taking a little bit of taxpayer money and not giving it to them because they don't deserve it."

Real Time Analytics