China has become a major donor to the Pacific Island Countries (PICs). However, Chinese aid arouses debate over China’s deep intentions. Realists argue that Chinese aid is self-interested and aims to serve its economic and political purposes. Conversely, followers of the South–South Cooperation believe that Chinese aid is rooted in altruism. Using panel data covering 13 independent PICs from 2006 to 2019, this paper examines whether Chinese aid is self-interested or altruistic. In addition, it aims to identify the determinants of Chinese aid as well as the effect of the inauguration of President Xi and the income levels of the recipients on China’s aid allocation. The paper finds that Chinese aid to the PICs became increasingly altruistic after President Xi assumed office. The altruistic characteristic also displays continuity since the era of former President Hu. Moreover, China tends to favor lower-income island countries but has to consider its capacity. The findings suggest that altruism, which is embedded in China’s aid to the PICs, is consistent with China’s increasing willingness to assume international responsibility. Meanwhile, the limited importance of the PICs also explains the less interest-oriented consideration of China’s aid allocation
China has become a major donor to the Pacific Island Countries (PICs). However, Chinese aid arouses debate over China’s deep intentions. Realists argue that Chinese aid is self-interested and aims to serve its economic and political purposes. Conversely, followers of the South–South Cooperation believe that Chinese aid is rooted in altruism. Using panel data covering 13 independent PICs from 2006 to 2019, this paper examines whether Chinese aid is self-interested or altruistic. In addition, it aims to identify the determinants of Chinese aid as well as the effect of the inauguration of President Xi and the income levels of the recipients on China’s aid allocation. The paper finds that Chinese aid to the PICs became increasingly altruistic after President Xi assumed office. The altruistic characteristic also displays continuity since the era of former President Hu. Moreover, China tends to favor lower-income island countries but has to consider its capacity. The findings suggest that altruism, which is embedded in China’s aid to the PICs, is consistent with China’s increasing willingness to assume international responsibility. Meanwhile, the limited importance of the PICs also explains the less interest-oriented consideration of China’s aid allocation