China's Belt And Road Initiative In ASEAN: Growing Presence, Recent Progress And Future Challenges

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Southeast Asia's interactions with China have tremendously transformed and prospered in the recent decades, with China becoming ever more present on Southeast Asian soil in recent history, touching all dimensions: economic, political, social, and cultural. The current ASEAN-China dynamics are remarkably different from the past, bearing both excitement and caution for watchers. In this context, the advent of China's Belt and Road Initiative (BRI) has added a new perspective to the nature of China's rise in ASEAN. As the various BRI projects continue to unfold in ASEAN countries, public concerns about the impact of these projects are on the rise. However, there has not been enough extensive study on this issue. This edited book contributes towards bridging the knowledge gap by facilitating experts from ASEAN, China, and beyond, to discuss, reflect, debate the ground realities of BRI based on the local governments' and local people's experiences and narratives. The chapters in this volume address various dimensions of the BRI, provide unique perspectives, empirical evidence, and updated information on the overall progress of BRI in ASEAN. Contents Preface About the Editors About the Contributors Acknowledgments Chapter 1 China’s Belt and Road Initiative and Its Implications for ASEAN: An Introduction 1. Background 1.1. BRI development 1.2. BRI investment 1.3. BRI significance for ASEAN 2. About the Book/Volume 2.1. A global context 2.2. BRI and ASEAN connectivity 2.3. ASEAN railway connectivity 2.4. Challenges of ASEAN 3. Conclusion References Chapter 2 China, Globalization, and the Advent of the Multiplex Order: Case Studies of BRI and AIIB 1. Introduction 2. Globalization: Definition and History 2.1. Definition 2.2. Oriental globalization: An often-ignored fact of globalization 3. Globalization Debate: Winners and Losers 3.1. Is globalization good? 3.2. End of globalization? 3.3. Multipolarity or multiplexity? 4. China’s Role: Case Studies of BRI and AIIB 4.1. The BRI and its problems 4.1.1. China’s Capacity to Sustain BRI in the Face of Diminishing Domestic Economic Growth Rate and China’s Domestic Repercussions 4.1.2. Political Instability in Many of Its Partners 4.1.3. The Resistance of Other Regional Powers: A New Great Game? 4.2. AIIB and the challenges and opportunities it brings 4.2.1. AIIB as a Multilateral and not China-Centric Institution 4.2.2. AIIB Being an Important Complement to the Existing Development Institution 4.2.3. A Test for China to Deliver Results 5. Conclusion References Chapter 3 BRI in the New Phase and Its Implications on China–ASEAN Relations 1. Introduction 2. BRI and Its Achievements in the Past Five Years 2.1. Policy coordination 2.2. Infrastructure connectivity 2.3. Unimpeded trade 2.4. Financial integration 2.5. Closer people-to-people ties 2.6. Industrial cooperation 3. Problems and Challenges 3.1. Different realities and ways of thinking — the problem of having a better understanding of each other 3.2. By big enterprises or SMEs? — the problem of development mode and benefit-sharing 3.3. Interaction with the grassroots — the problem of lack of understanding with the local communities 3.4. China–MRC relations and regional water resources management — the problem of building mutual trust 3.4.1. Concerns among the Lower Mekong Countries about the Lancang Hydropower Development 3.4.2. China’s Relationship with the MRC 4. BRI in the New Phase and Its Characteristics 5. BRI and China–ASEAN Cooperation in Coming Years 5.1. The beauty and the suitors — China’s leading role in triggering a healthy competition for regional cooperation centered on ASEAN 5.2. Opportunities and potentials for cooperation under BRI framework 5.2.1. Market Access and Regional Connectivity 5.2.2. Growing Complementarities and Opportunities for Industrial Cooperation 5.3. Common challenges 5.3.1. The Stagnant and Worsening Productivity 5.3.2. The Growing Disparities 5.3.3. Lack of Innovation 6. Conclusions References Chapter 4 Belt and Road Initiatives (BRI) in ASEAN within the Context of the American Indo-Pacific Strategy 1. The Indo-Pacific Strategy Put Forward by the United States 2. The Indo-Pacific Strategy of the United States and China’s “Belt and Road” Initiative 3. Responses of Countries in Southeast Asia to the US Indo-Pacific Strategy 4. Implementation of Belt and Road Initiatives in Southeast Asia in the Context of the American Indo-Pacific Strategy Bibliography Chapter 5 Measuring China’s Influence in Europe: Contextualizing the Impact of the Belt and Road Initiative 1. Introduction: EU Perception of China and the BRI 2. The Belt and Road and Its Strategy in Europe 3. Measuring Chinese Influence through Economic Statecraft 4. China–EU Relations and Measuring the Influence of the BRI 4.1. Chinese economic statecraft seen by Europe: Divide et impera and authoritarian spread 4.2. Measuring Chinese economic statecraft and its objectives in Europe 5. Conclusion: Assessing the Success of the BRI in Europe and China Influence References Chapter 6 China’s Belt and Road Initiative and ASEAN Connectivity in Development: Can Both Bring Synergy and Opportunities Together? 1. Introduction 2. China’s BRI in ASEAN: Salient Features 2.1. Strategic context and intent 2.2. Possible implications 2.3. Progress so far 3. China’s BRI and ASEAN Connectivity 3.1. Implications for ASEAN connectivity 3.2. Synergy in the making? 3.3. Landscape changes from Thailand’s HSR 4. Challenges for ASEAN Connectivity 4.1. Too much of “good” things? 4.2. BRI institutions and governance in practice 5. Conclusion References Chapter 7 BRI Projects in ASEAN: Implementation, Mechanism, and Suggestions 1. Implementation of BRI Projects in ASEAN 1.1. Cooperation on trade and investment 1.2. Cooperation on energy 1.3. Cooperation on infrastructure 1.4. Cooperation on industrial parks 2. Models of BRI Projects in ASEAN 2.1. Participation of Chinese government in BRI projects in ASEAN 2.2. Participation of state-owned enterprises in BRI projects in ASEAN 2.3. Participation of private enterprises in BRI projects in ASEAN 3. Challenges for BRI Projects 3.1. Political concerns 3.2. Inconsistent standards 3.3. Differences in business environment 4. Suggestions 4.1. To enhance mutual trust 4.2. To align technological standards for infrastructure projects 4.3. To respect the national conditions of host countries References Chapter 8 China’s BRI and FDI in Mainland ASEAN 1. Introduction 2. Overview of China’s BRI and Mainland ASEAN 2.1. China’s BRI 2.2. BRI and mainland ASEAN 3. Chinese FDI in Mainland ASEAN 3.1. China’s investment in mainland ASEAN 3.2. From infrastructure investment to FDI in manufacturing and services sectors 4. Strategic Locations of Chinese FDI: Boten, Shwe Kokko, and Sihanoukville 4.1. Boten in Laos: China’s gateway to ASEAN 4.1.1. Overview of Investment in Boten 4.1.2. Implications 4.2. Shwe Kokko in Myawaddy, Myanmar: Outpost of China’s BRI 4.2.1. Overview of Investment in Shwe Kokko 4.2.2. Implications 4.3. Sihanoukville in Cambodia: China’s strategic logistics hub 4.3.1. Overview of Investment in Sihanoukville 4.3.2. Implications 5. The Way Forward References Chapter 9 The Politics of Thailand–China Railway Cooperation: Domestic Determinants of Smaller State BRI Engagement 1. Introduction 2. Rail Partnership in Thailand’s BRI Engagement 3. Thailand–China Rail Engagement: The Early Years 4. The Yingluck Years (2011–2014) 5. The Prayut Period (2014–Present) 6. Conclusions Acknowledgments References Chapter 10 Laos–China Railway: Progress and Challenges 1. Background 2. Timeline and Progress of the Laos–China Railway 2.1. Timeline 2.2. The railway design 2.3. Progress of Laos-China railway 2.3.1. Construction 2.3.2. Relocation 2.3.3. Compensation 2.3.4. Unexploded Ordnance Clearance 3. Benefits 3.1. Trade and investment 3.2. Transportation 3.3. Tourism sector 3.4. Others benefits 3.4.1. Boten Special Economic Zones 3.4.2. Employment 4. Challenges 4.1. Raise of concern on government debt 4.2. Delay of compensation 4.3. Labor management 5. Public Opinions 6. Conclusion and Policy Recommendation References Chapter 11 Hekou, Where Vietnam Begins and China Ends or Where China Expands into Vietnam? 1. Vignettes of the In-Between 2. Hekou: Where One Begins and the Other Ends? 3. Dian–Việt Railway Corridor in the Age of BRI 4. Tuhua and Baihua: Hekou’s Diverse Population 5. Guanhua: Chinese State Formation in Hekou 6. Little Hong Kong of Yunnan 6.1. International commercial port 6.2. Opium economy 6.3. Cantonese society and culture 7. “Southern Accents and Northern Tones” [南腔北调]: Hekou after 1949 8. A “Vietnam City” in China 9. China on the Ground at the Border References Chapter 12 Myanmar: A Strategic Partner in China’s Belt and Road Initiative 1. Introduction 2. A Geo-Strategic and Economic Perspective 3. Myanmar–China Multisector Connectivity 3.1. China–Myanmar connectivity before BRI 3.2. Myanmar–China relations under BRI 4. BRI and Myanmar: Benefits but with Concerns References Chapter 13 Contract Farming and Agribusiness Related to China Investment in Northern Laos 1. Introduction 2. How Chinese Investment Change Agricultural Landscape in Northern Province 3. Impact of Chinese Investment and Contract Farming on Livelihood 4. Conclusion References Chapter 14 The Belt and Road Initiative and Indonesia’s Response to the Rise of China 1. Introduction 2. The BRI: The Rise of China and Its Global Responses 3. The BRI in Indonesia 4. The Challenges of the BRI in Indonesia 5. Conclusion References Chapter 15 Treat and Threat: Chinese Financing of Duterte’s Build! Build! Build! Programs 1. Introduction 2. China’s Belt and Road Initiatives 3. Duterte’s Build! Build! Build! Initiatives 4. Treat: Advantages to the Economy and Investment Links, and Political Advancement 5. Threat: Debt Traps and Labor Issues 6. Conclusion References Chapter 16 Benefit Imbalance and Market Domination in Cross-Border Fruit Value Chain: The Case of Thai Longans 1. Introduction 2. Related Trade Facilitation Initiatives 3. Longan Exports to China 4. Governance of the Value Chain of Exported Longan 5. Discussion and Conclusion References Index