The move would create a “critical state function” and deserved “high-level attention and institutional support”, the Overseas Development Institute has said.

The agency will be responsible for making strategic guidelines, plans and policies on foreign aid, including the coordination and making suggestions on major issues related to it.

It will also push for reforms related to, and oversee and evaluate the implementation of, foreign aid plans.

The ODI said initial reports suggested the new agency will be separate from the Ministry of Commerce and the Ministry of Foreign Affairs.

ODI senior research fellow Annalisa Prizzon said: “This agency should drive a stronger and more effective role for China as a provider of development finance, both globally and at the country level.”

She added that the leadership of the government was crucial for the delivery of development, both in terms of aid volumes, such as a ring-faced aid budgeting, and quality indicators.

She said: “Details about the structure of the agency are incomplete. It is expected to set policy directions and strategies on development cooperation while strengthening and consolidating coordination across those ministries with a development mandate.”

China has not yet released any details on the agency, or advised when they will be made public.