The authors describe China’s development aid and analyse the economic and diplomatic determinants of the evolution of the Chinese aid system. China’s modern aid combines project aid, grants and loans, debt relief (but not budget support), humanitarian aid, human resource development and technical assistance. There are a growing number of Chinese initiatives, including its aid programme in Africa. Most recently, the 13th National People’s Congress in March 2018 announced the establishment of a separate international development cooperation agency, directed by the State Council. De Haan and Warmerdam discuss the impact of changing global economics on China’s foreign aid, the way it is used as its ‘soft power’, and how China contributes to the UN and Sustainable Development Goals, while it has gradually enhanced its position in international finance. They show how these issues are important for understanding the impact of Chinese aid and the way China’s aid is embedded in its broader political and economic international relations.