ISLAMABAD (Urdu Times) China’s Rise and the Global South: From Aid Dependency to Economic Partnership

Written By Ms. Shumaila Khan, a Participant of ICSF-SBBWU Fellowship Programme 2026-2027

Throughout history, many states have struggled to achieve economic growth and have depended on aid from developed countries. This dependency has often constrained their economic development. The Global South is a case in this regard. However, the rise of China has emerged as a catalyst for transforming this aid dependency into partnerships. China has made skills development agreements with African nations, under which it has committed to training 60,000 Africans in digital skills. Likewise, China has made agreements with Egypt and Pakistan to boost economic partnerships among them through special economic zones. Initiatives like the Digital Silk Road transform technology from Beijing to developing economies. In the sphere of education, China is committed to excelling in STEM cooperation in African countries. In the same manner, China has initiated military cooperation with Global South countries like Pakistan and Indonesia to strengthen their security umbrellas. In the domains of infrastructure and the environment, China has proved to be a giant that has resolved their issues. Moreover, China is determined to accelerate agricultural research and trade for the Global South. Thus, the emergence of China has shifted the Global South from aid-dependent nations to economic partners.

To begin with, China has made skills development agreements with countries like Pakistan and African nations. The aim of these agreements is to create technical and digital skills. Digital skills enhance industrial growth and lead to trade expansion. The increase in trade ultimately establishes stronger economic partnerships among these nations. For instance, China is committed to training 60,000 Africans in vocational education and digital skills. Therefore, China has transformed Global South countries from aid-dependent nations into stronger economic partners.

China has begun the projects such as CPEC, which includes special economic zones in other countries including Pakistan, Egypt, and Sri Lanka. These projects develop Foreign Direct Investment (FDI) and enhance trade cooperation. The CPEC project is accompanied by an industrialization boom, a transfer of skilled workers. It helps improve domestic production, job creation and export expansion. The rise in exports also improves supply chain and ultimately boosts these economies and economic relationships. Therefore, the Global South is becoming an economically prosperous region due to the emergence of China.

Moreover, Beijing has made commitments in the areas of technology and education. Technology transfer, digital inclusion and capacity building are also promoted in programs such as the Global Development Initiative which is designed to facilitate the economic and social development of the Global South. The Chinese Government offers scholarships and student exchange programs to improve the educational systems of the countries of the Global South. Such developments boost human capital and promote innovation and job creation. Innovation creates an upswing of trade and industrial development. As a result, China’s technological and educational measures have made emerging economies from the aid recipient countries to economic partners.

In addition to trade and infrastructure, China is also building up defense and environmental cooperation with the Global South. It has defense cooperation agreements with Pakistan and the countries in Southeast Asia, which include joint military drills and defense manufacturing. These are technology transfer and economic opportunities promotion. In the same way, China’s cooperation in the field of climate change promotes renewable energy and climate resilience in the PIOs. It also promotes investment in clean energy and green industries. This collaboration generates employment opportunities, builds skills and supports local economies. Through this, China is encouraging developing countries to go beyond being recipients of aid to become self-reliant and partners for China in the long run.

In addition, China is deepening its economic engagement with the Global South via infrastructure and agriculture. CPEC, infrastructure connections with Central Asia enhances transport and trade. Improved connectivity cuts the cost, brings investments and job opportunities. Likewise, China’s cooperation in agriculture with Pakistan and Latin America encourages research, modern agriculture and food processing techniques. These activities can boost crop production and agricultural exports. They also help in the development of rural areas and provide additional jobs. Furthermore, such cooperation in these areas contributes to the development of productive capacity of developing countries and less dependence on foreign aid. So China is creating new avenues for long-term economic cooperation.

For many countries of the Global South, dependency on foreign aid, economic stagnation and the vicious cycle of debt have been ongoing realities for long. But China’s ascendancy has opened new doors to economic opportunities. By facilitating trade, infrastructure and agriculture development, technology transfer, defense and environmental cooperation, China is assisting these countries to gradually gain economic self-reliance. President Xi Jinping said that the world should strive for “win-win cooperation” and that a “world of common prosperity” should be achieved. These partnerships, if they are mutually beneficial, can generate jobs, build local industries and open the door to a more prosperous future for the Global South.