China’s infrastructural expansion in southeast asia

Abstract

This paper is aimed at the analysis of contemporary China’s policy of realisation of large-scale infrastructure projects in the region of Southeast Asia. In the recent years, the People’s Republic of China has intensified the promotion of such projects, insisting on the faster development of “One Belt, One Road” initiative. As a neighbouring region for China, Southeast Asia is subject to this policy, and many states, either driven by the desire of some profit, or not used to the format of this cooperation and its probable consequences, or unable to dismiss the initiatives of a powerful neighbour, have already agreed to allow the wider participation of the PRC in the construction of highways, railroads and other infrastructure in their territories. The construction is carried out on the basis of tied loans, with bids and offers going primarily to Chinese contractors, and with the use of Chinese workforce. As a result, typically after the completion of such projects, one side – the PRC – receives considerable margins and strengthens its impact in the region or in the economy of a partner state, while the other one – the recipient – acquires infrastructure, but for the price of financial dependence, additional expenses (any loan has to be paid back with the interest rate) and, in many cases, negative environmental impact and social tensions. This paper displays these common features of China-led infrastructure projects in Southeast Asia and, in addition, analyses the reaction of the regional political elites and societies to this situation. Moreover, it is discussed, how China’s infrastructure projects in Southeast Asia become an example of the interplay between soft and hard power, wherein soft power can serve as a leverage to hard power.