Buying power: how China co-opts the UN

It was one of those forgettably historic moments at the United Nations. The year was 2015, the UN’s 70th anniversary, and China’s President Xi Jinping was in New York, speaking in person to the UN General Assembly. In festive spirit, Xi announced that China would set up a $1 billion trust fund to be dispersed over ten years to ‘support the UN’s work’ and ‘contribute more to world peace and development’.

So began the Peace and Development Trust Fund, one of China’s more insidious projects to co-opt the UN, its logo and its global networks. On Xi’s watch, China has become the second-largest contributor to the UN General Assembly and Peace-keeping budgets, secured the fawning allegiance of the World Health Organisation and taken charge of four other specialised UN agencies.

But that trust fund, one of Xi’s pet projects, has taken on a quietly invasive role that needs a major public airing. China’s Peace and Development fund bypasses the common pots of UN funding and channels millions of dollars every year directly from Beijing to the executive office of the UN Secretary-General.

Not that the $1 billion promised by Xi ever fully materialised. By the time the deal was signed in 2016, China had arranged a big discount for itself, downsizing the gift to $200 million over ten years, or $20 million a year. It was still gravy, and the then Secretary–General Ban Ki-moon was grateful. His spokesman described China’s new fund as a ‘demonstration of the strong commitment of the government and people of China to the goals and activities of the UN’.

Actually, it’s worked the other way around: China’s Peace and Development fund has translated into a stronger UN commitment to the goals and activities of China. A priority of this fund is UN promotion of Xi’s Belt and Road Initiative, with its predatory lending practices, strong-arm diplomacy and trade practices, and potential military extension of China’s reach.