Taipei and Beijing have utilized foreign economic assistance as an instrument of foreign policy ever since the 1950s. After 1971, when Taipei was forced to withdraw from the United Nations, diplomatic competition became much more intensive in almost every corner of the world. For both of them, foreign aid has been a useful means to help pursue their foreign policy goals. For economists and political scientists, the issue of aid motivation has long been debated from different perspectives. Empirically, the donor's diplomatic motivation in giving aid determines its selection of those specific recipients and thus conduces to the formation of aid distribution patterns geographically. Consequently, the relationship between aid and economic development can be illustrated from different aspects, which construct the analytical framework of this paper. First, does aid tend to facilitate the recipient's economic development, or is the donor really concerned about the recipients? Secondly, features of the donor countries' aid programs are basically shaped by their own experience of economic development. As a result, a recipient country must take into account these aid features before any decisions are made to accept aid. Theoretically, the geographical aid distribution is thus also partially determined by the side of the recipient itself, in addition to the traditional role that the donor plays. Different experiences of economic development in Taiwan and mainland China indeed help to explain the disparities of their foreign aid programs. The distinctions of their aid programs also determine aid distribution patterns between Taipei and Beijing. Taipei's aid focuses on Latin America and Southeast Asia, while Beijing concentrates of Africa. By the same token, different levels of economic development in these regions are also conducive to explain why they are in need of either Taipei or Beijing's foreign aid.