Behind China’s $100M Gaza donation
Since China did not play a major role in ending the fighting, stepping up humanitarian aid is a useful bridge to the next stage: post‑conflict reconstruction.
Hi readers,
While much of the attention this week has centred on China’s major victory in securing Nvidia’s H200 artificial intelligence accelerators, Beijing also made headlines in the Middle East with newly announced military drills alongside the United Arab Emirates, as well as a regional tour by its top diplomat, Wang Yi, to Saudi Arabia, Jordan and the UAE.
But the most eye-catching development came last Thursday, when Chinese President Xi Jinping announced that China will donate $100 million in humanitarian aid to Gaza — a move that is rare for Beijing in economic, political, and diplomatic terms. The announcement signals China’s growing ambition to shape postwar Gaza and, more broadly, to position itself as a humanitarian advocate on the Palestinian issue.
We explore more below.
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Leading this week
➡️ What China announced
Xi made the announcement during talks with French President Emmanuel Macron, who was on a state visit to China.
“China will provide $100 million of assistance to Palestine to alleviate the humanitarian crisis in Gaza and support its recovery and reconstruction,” Xi said in Beijing, according to a statement from the Chinese Foreign Ministry. The pledge marks one of Beijing’s largest single public aid commitments to the Palestinians and is being framed as part of China’s push to play a more visible diplomatic and humanitarian role in the conflict.
The Palestinian militant group Hamas, which still maintains control of Gaza, was quick to thank Beijing. “This generous initiative comes as an extension of China’s historical and firm positions supporting the inalienable rights of our Palestinian people,” the group said in a statement.
➡️ Why this is unusual
The Chinese aid package is rare in its form and size. Yun Sun, a senior fellow and director of the China program at the Stimson Center, described the move as unusual: “This is an unusually large package, much larger than the usual size of China's humanitarian aid donation.”
The cash component of the donation makes it even more peculiar. “Chinese aid prioritizes loans over cash grants, so a cash package of this size is very rare,” Yun said.
The amount is substantial by China’s own standards. By comparison, Chinese aid to Ukraine has totaled roughly $2.9 million, including four batches of humanitarian assistance and another package announced in March. China’s emergency assistance after the 2023 Turkey‑Syria earthquakes was about $4.4 million.
Earlier support to Gaza was smaller and often in kind. In late October 2023, China sent a first batch of emergency supplies along with cash assistance to both the Palestinian Authority and UNRWA, totaling around $2 million. In May 2024, at the China‑Arab States Cooperation Forum, Beijing pledged 500 million yuan (roughly $69 million) for Gaza humanitarian relief.
Even these figures pale in comparison to China’s overseas lending, the main vehicle of its external assistance. In 2023, China extended about $140 billion in loans to public and private borrowers worldwide, while its official development assistance was around $1.9 billion, according to AidData.
➡️ What China is seeking
For Beijing, the announcement serves three core aims:
- It aligns with China’s long‑standing rhetorical support for the Palestinian cause.
- It signals Beijing’s ambition to secure a seat at the table in shaping postwar Gaza.
- It presents China as a humanitarian actor at a moment when US commitments in this space are receding.
After the ceasefire, Yun argues that China now sees the Gaza war as largely over and the situation as moving into a new phase.
Beijing is also trying to compensate for its limited role in brokering the ceasefire, which was led by the United States, with support from Egypt and Qatar. Since China did not play a major role in ending the fighting, stepping up humanitarian aid is a useful bridge to the next stage: post‑conflict reconstruction.
“The war attested to China’s lack of a critical role in issues fundamental to regional peace and stability,” Yun said, noting that Beijing is now looking to humanitarian assistance and deeper economic engagement to secure a place at the negotiating table in the next phase.
➡️ Amplifying differences with US
It is difficult to isolate China’s Gaza move from the broader context of US aid cuts under President Donald Trump. This year, as Washington moved to slash funding for key UN relief agencies, Beijing pledged $3 million directly to UNRWA, positioning itself as a supporter of the UN system.
A Feb. 2, 2025 cartoon, in French, published by China Radio International Online. The text reads, "Les fournitures de Gaza peuvent être coupées, mais pas les armes pour mon frère," which roughly translates to "supplies to Gaza may be cut off, but not the weapons for my brother."
Though 2025 data are still incomplete, available figures suggest US foreign assistance to the West Bank and Gaza has nearly halved, dropping to about $550 million, with roughly $430 million earmarked for humanitarian aid. The decline partly reflects deeper structural shifts, including the Trump administration’s decision in March to dramatically shrink USAID’s footprint, which ultimately resulted in the organization cutting an estimated 83% of its overseas programs.
At least $30 million of US spending in Gaza this year went to the highly controversial Gaza Humanitarian Foundation.
Yet Yun sees benefits for China regardless of the US position. “Even if the US had not pulled back its support, China would likely have contributed — but not at this scale,” she said.
Our take: For Beijing, Gaza offers multiple incentives: It bolsters China’s standing in the Arab and Muslim streets, projects goodwill toward regional and European partners and creates a contrast with US policies. As Washington’s humanitarian role shrinks in the broader Middle East, expect Beijing to step in without having to completely fill that void.
Photo of the week
A file photo taken in 1991 shows Zhao Qizheng [L], then deputy mayor of Shanghai, hand in hand with Yasser Arafat at Shanghai's Hongqiao Airport. [China Daily]
Deals and visits ✈️
- China’s Yasha Group sends delegation to UAE
- Chinese vice foreign minister holds bilateral talks with Iranian counterpart
- Iran, Saudi Arabia and China hold trilateral meeting in Tehran
- Saudi national guard official meets officials from Chinese army
- Emirati, Chinese universities establish joint innovation lab
- China launches satellites for Egypt, UAE
- Chinese textile firm to establish new industrial facility in Egypt
- China, UAE hold third joint air force training drill
- China International Capital Corporation, Abu Dhabi Investment Office enter strategic partnership
- Chinese payment services company YeePay establishes regional HQ in Abu Dhabi
What we are reading
- How Trump's U-turn on Nvidia chips changes the game for China's AI: The Wall Street Journal
- Iran’s China pivot deepens as Tehran's thaw with Saudi Arabia gets reality check: Al-Monitor
- Three lessons China learned from the United States: Foreign Policy