A primer on China's Belt and Road Initiative plans in South-east Asia
The economic potential of China's Belt and Road projects in South-east Asia is huge. But whether that potential can be maximised hinges not on funding or capability, rather it will depend on how well the various economies involved are able to foster trust and cooperation.
So says DBS research strategist Chris Leung, in a recent report on the impact of BRI plans in the region. ASEANBUSINESS presents the most salient points from that report.
What are the key BRI plans involving South-east Asia?
The overarching plan is to connect Kunming, capital of Yunnan province and the closest major Chinese city to South-east Asia, with various countries, via three proposed railway routes:
If these routes materialise, what will they bring?
Which looks most likely to materialise?
The central route, which covers the highest-income countries of that region (Thailand, Malaysia, and Singapore), has the least political resistance. Mr Leung believes the development and success of these initiatives will hinge on China's diplomatic ties with the countries involved.
What do the various Asean economies along the BRI route stand to gain?
Laos
Thailand
Malaysia
Vietnam and Myanmar
Mr Leung believes that "South-east Asia will be the first to reap economic benefits from this megatrend" of China's BRI. "China must deliver concrete results in South-east Asia to highlight the brilliance of the concept worldwide. The grand plan is clear and the challenges are known."
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