Foreign aid as an important issue in contemporary international relations is always disputed in many areas. The western scholars claimed that no matter what form of foreign aid. its essence is with political purpose which aims for promoting and protecting their own national interests. Because of various national economies, political environment, social nature in different countries, there is huge differences in their foreign financial aid. In particular, European Union has provided more than half of the world's foreign aid, so their policies deeply affected the trend of the international aid system. Nowadays Chinese foreign aid, especially the decision and purpose of foreign aid policies, are bringing more and more attention in the international society. So to compare the foreign aid system of two countries could reflect something important in the status and the trend of the international aid system, and find out the factors which affect the decision of policies scientifically and regularly. This thesis starts from the conception and status of the international aid system, and then we will compare and analyze the development of the two countries in different periods according to the order of time. After that, I will explain the differences among the two country’s foreign aid policies from the point of view like, purpose, management system and distribution parts. The development of European Union foreign aid and the evolvement of its policies show that European Union foreign aid is for the economic or geopolitical interests, and also can improve its international status. In addition, we will also spend some time on Chinese financial aid where they claimed to build a peaceful and equitable new international system, and attached important to exalting the economic power and the standard of living in the third world countries. At last, I will also talk about the practice in European Union foreign aid and hope to come up with some suggestions for the development of Chinese foreign aid based on the experience in Europe. Key words: Foreign Aid; development status; Comparison of policies