Abstract:

Viewed from a dual perspective of China's modernization needs and Australia's economic and political considerations, this paper deals with Australia's official development assistance(ODA)to China since the inception of China's new plan for modernization in late 1978.The Australian aid to China, though without figuring prominently in China's total ODA inflow, has generated not only mutual economic benefits but also unique political significance.As a Western nation and one of the earliest donors for China, Australia has continuously played a role, via economic aid, in promoting good governance, helping advance rural development, management of environment and natural resources, as well as supporting to improve basic health of the rural poor and China's reform of its educational system.Australia's aid assists to address China's domestic social and economic problems and to facilitate its transition to market economy and sustainable development.

Key words: Australia's aid to China, favored loan plan, administration of govemmntal affair