Abstract: As part of the institutional reform plan of the State Council approved by the 13th National People’s Congress, a new aid agency, China International Development Cooperation Agency was inaugurated in April 2018. As the first such agency in the country’s history, its establishment will bring about a major change in the implementation structure of China’s foreign aid. It is important to follow and understand how China will improve and increase its foreign aid. This article reviews the current status of China’s foreign aid: forms and implementation structure, aid policies, volume of aid, and future challenges.