The Belt and Road Initiative is often seen in the West as a Chinese challenge to the global order, but the BRI is important to ASEAN. Since 2000, ASEAN is a regional economy that has been developing around China. China’s population is about twice that of ASEAN countries combined, and its economy is much larger. China’s southwest border with many ASEAN countries has also facilitated many projects that are being advanced.
In Laos, China is financing a cross-border railway linking the Lao capital Vientiane with the southwestern Chinese city of Kunming. Thanks to Chinese investment, Cambodia also has highway, communications satellite and international airport projects under way. In Timor-Leste, China has invested in the construction of highways and ports, and Chinese companies have won the bid for the operation and maintenance of the National grid of Timor-Leste. Indonesia’s public transport and railways have benefited from the Belt and Road Initiative. Vietnam also has a new light rail line. Since the late 1980s, Chinese investment in Myanmar has topped the list of foreign investments. Singapore is not only a partner in the Belt and Road Initiative, but also a founding member of the AIIB.
Most ASEAN countries see the Belt and Road Initiative as an opportunity to build infrastructure and boost their domestic economies, especially as global economic growth is expected to decline. Asean’s biggest beneficiaries under the Belt and Road Initiative are medium-sized economies that have accepted China’s offer to help through cooperation without falling into a debt trap. Barring a sudden, devastating shock, China will continue to play an important role in distributing wealth and helping global growth, especially for ASEAN countries.
When the BRI was signed, ASEAN’s smaller economies relied on generous Chinese loans. However, as long as ASEAN countries participating in the Belt and Road Initiative can repay their debts and assess the potential benefits of the projects they are working on, the initiative can continue to serve as a shot in the arm for the region’s economy.
Post time: Aug-09-2023
