Very little is known about the nature of China’s lending to developing countires. This paper examines one of the key mechanisms the Chinese government uses to implement its aid - the Chinese Export-Import Bank (ExIm). Drawing on Chinese language sources, it investigates the nature of Exim lending and who is receiving ExIm loans.

Based on the available information, the study finds that:
over 48 countires have agreements with China for concessional loans through ExIm Bank
an average loan of US$20-30 million is made available to Chinese firms to develop infastrucutre in developing countires
the concessional loans appear to be provided for a term of between 10-20 years (mean is 15.5 years), at an interest rate between 2%-4% (mean 2.85%) and a grace period between 3-7 years
the purpose of Chinese concessional lending is more oriented toward Chinese export promotion than the national economic development of recipient countries

However, the paper also finds that the Chinese government is unwilling to provide information on many aspects of Chinese concessional loans. This includes the terms of the loan, and information on interest payments and debt forgiveness. The rationale behind this lack of transparency, it suggests, may be the desire to protect Chinese commerical interests or the fact that Chinese concessional loans may not classify as Official Development Assistance.