World Bank or Chinese government: who’s got a deeper pocket?

World Bank’s planned five-year quota (2006-2010) on loans to China is merely $1.5 billion. China probably spends much more than this amount in one single African country, and sometimes without requiring for repayment.

What China needs from the World Bank is not money, but technical assistance on both technology and governance. Some American politicians try to use World Bank loan to pressure China by threatening to withdraw lending. It is going to work only in opposite direction.

When China receive nominal amount of $1.5 billion from the World Bank, she at least shows a gesture of opening herself to outside influence. Merely $1.5 billion gives the World Bank a foothold in China, to exert her influence in among other areas environmental protection, institutional reforms, better governance.

The whole deal is not about money. Financial aid is never about money. It is about exchange of ideas and strengthening of relationships.

P.S., China receives about 650 million USD of low-interest loans annualy from Japan, which is planned to be terminated before 2008. The amout is certainly greater than what the World Bank extends to China, but again, it is very small compared to China's domestic saving, and this type of loans is always more a good gesture of friendship rather than real financial favor.

The Financial Express: World Bank offers $1.5 b loan to China 

BEIJING, MAY 28:  The World Bank has pledged to lend up to $1.5 billion in loans to China annually between 2006 and 2010 to help the communist giant’s smooth integration into the world economy and face other challenges, including reducing poverty. 
RP eyes $32b China loans

Reuters: China to lend Nigeria $1 billion to fix railways
BEIJING (Reuters) - China will give Nigeria a $1 billion loan to fix its dilapidated railways, Xinhua news agency said on Monday, in another sign of China's growing economic sway across Africa.

Manila Standard Today: RP eyes $32b China loans
The Philippines is looking to tap $32 billion in concessional loans and other credit facilities from the People’s Republic of China to finance major projects, including infrastructure, agriculture and mass housing.
(note: I am not sure about the unit of the currency, as the numbers in the main text does not add up to $32b)