What’s Behind China’s Trade Routes? - As Singapore assumes the chairmanship of ASEAN-China relations in 2018, we take a look at how the Silk Road is impacting Indochina.

Laos: Why is Laos such a steadfast ally of China?

We travel through the country to find out that China invests in and controls many major sectors of the Laos economy. The largest malls and Cineplexes are Chinese-built, the Laos satellite is operated by the Chinese, Chinese tourism facilities and schools litter the country, and now, the biggest industrial investment in the country is also from China.

Is this heavy reliance on China a boon or bane for Laos? Is Laos the new investment hotspot? What does this mean for the rest of Indochina and ASEAN?

Thailand and Cambodia: Beijing wields pivotal influence on its smaller and poorer southern neighbor – from providing ideological inspiration and patronage for the Khmer Rouge and its radical revolution in the 1970s to granting a home in exile for Cambodia’s deposed monarch to offering investment and legitimacy to Hun Sen’s authoritarian state today. For Hun Sen, China’s “no strings attached” aid has helped war-torn Cambodia build a modern infrastructure, and diplomatic support from Beijing helps him fend off human rights criticism from the West. At the same time, however, Cambodians are increasingly wondering if China’s footprint in their country is too big.

What are the different opinions within Cambodia on its ties with China; and how do other ASEAN member states view the development?

Finally, we head to ASEAN’s second-largest economy- Thailand. Ever since the military coup in 2014, China has gone from barely breaking the top 10 in 2012, to being the second largest investor in 2016. Other indicators of a major shift in relations between China and the Land of Smiles range from tourism to language instruction to giant bilateral infrastructure projects.
Key in the infrastructural sector is the $5.2 billion rail masterplan to link Southern China to Laos, Bangkok, and subsequently down to Malaysia. As our last stop in Indochina, we will be able to see how extensive the One Belt One Road project has become in the region, and how 4 of the 10 ASEAN countries are firmly in China’s orbit. 

#chinaeconomy #china #silkroad