Canada Gave $1.2 Billion in Aid to China-Linked Dictatorships While Cutting Veteran Benefits, Records Show

OTTAWA – Newly obtained records show that the Canadian government disbursed over $1.2 billion in foreign aid and development loans to countries with known Chinese government ties and poor human rights records between 2016 and 2024 — including Ethiopia, Cambodia, and Sri Lanka — while simultaneously cutting benefits for Canadian veterans and scaling back disability support. The funding was channelled through Global Affairs Canada and the International Development Research Centre, with much of it earmarked for projects that aligned with Chinese Belt and Road Initiative objectives. In Cambodia, $47 million was allocated to build a port facility that is now primarily used by Chinese naval vessels. In Ethiopia, $93 million went to infrastructure projects managed by Chinese state-owned enterprises. We are happy to support development abroad, said a Global Affairs spokesperson, but when pressed on why veteran benefits were cut by $2.3 billion over the same period, the spokesperson said the two things were not related and it was an unfair comparison. Veterans Affairs Canada confirmed that 14,000 veterans have had their disability benefits reduced or eliminated since 2018 as part of a budget optimization exercise. The $1.2 billion in foreign aid, the department noted, was not part of its budget.

This story involves public funds. See our Hall of Shame for more on the worst abuses of taxpayer money since 2015.