Krasnozhon, Aleksei2025-06-032025-06-032025-05-19https://repository.tcu.edu/handle/116099117/67132The United States provides financial aid to a multitude of countries, but why does it provide money to some nations and not others? Over the last decade, the U.S. has increased its aid to Africa by almost three billion dollars, which leads to the question - What drove that increase? While a multitude of variables can account for such an increase, without doubt, one of those variables is increased Chinese presence. China has actively distributed funds to Africa through its Belt and Road initiative, and the U.S. did not hesitate to respond by increasing its aid. The data suggests that there is a quo-pro-quo dynamic in the distribution of aid. As China increases its aid, the U.S. follows, and in return, China increases its aid, which leads to the conclusion that an active aid battle is taking place between the two nations. Furthermore, Chinese foreign direct investment (FDI) fluctuates relative to the aid that U.S provides. If the U.S. decreases its aid one year, the following year, Chinese FDI will decrease, and if the U.S. increases its aid, Chinese FDI will increase the following year. Hence, a conclusion can be drawn that there is an active rivalry between the two nations. As the study suggested, a nation's population does not meaningfully affect the amount of aid an African nation receives from either the U.S. or China. However, what affects the amount of aid that the United States distributes is whether China has distributed aid previously and whether China has increased/decreased its aid the year before. Similarly, Chinese aid distribution is affected in the same way; if the United States increases its aid, China does the same in response. Overall, there is a rivalry taking place between the U.S. and China through the aid in Africa.