Economics and Diplomacy: Beijing’s Successes in Southeast Asia

REM

In recent decades, the PRC has achieved outstanding success in foreign policy by developing economic and political relations with various countries around the world. However, relations with the nearest neighbors are of particular importance for any country, and the security of the state often depends on relations with them. Every powerful state that plays a significant role in the international arena creates a “security sphere” around itself composed of its closest neighbors, while offering them mutually beneficial cooperation and protection in exchange for loyalty. If it is not possible to establish close and lasting relations with neighbors, then they may fall under the influence of competitors and become their springboard, thus turning into a constant source of threat for the country in question. Therefore, it is not surprising that the PRC attaches special importance to its relations with the nearest states, including the countries of Southeast Asia.

The latter is a rapidly developing region in which the population and industry are continuously growing. This makes Southeast Asia a very promising partner in terms of economic cooperation. On the other hand, it is a rather unstable region plagued by poverty, mass crime, drug trafficking and terrorism, and a certain part of this region is controlled by illegal armed groups. First of all, we are talking about certain areas of countries such as Myanmar, etc.

Thus, in order to secure its southern borders, China needs not only to develop trade with Southeast Asian countries, but also to maintain its influence there so as not to allow excessive strengthening of groups hostile to China.

As far as is known, the main opponent of China in the international arena is currently the United States. It is trying in every way to increase its influence in Southeast Asia in order to restrain the development of the PRC and gain access to its borders. The United States has firmly established itself in countries such as the Philippines and Singapore, where American military bases are located, which significantly limits the regional capabilities of the PRC.

However, Beijing is also expanding its position in these countries. For instance, now it is already the main trading partner of Singapore and one of the main ones for the Philippines. Over time, economic influence can turn into political and military preponderance.

Since China needs to cover all Southeast Asian countries with its activities, it is important for it to cooperate with the organization uniting the region, namely, the Association of Southeast Asian Nations (ASEAN). This goal is being actively achieved. Back in 2003, the PRC joined the Treaty of Friendship and Cooperation in Southeast Asia, which underlies the activities of ASEAN, but at the same time is open for non-regional states to join. Also in 2003, the PRC and ASEAN declared their strategic partnership.

In 2010, a free trade agreement entered into force between China and ASEAN, which established ASEAN as the main market for Chinese high-tech products, and the PRC as the main importer of cheap agricultural products from ASEAN countries.

In November 2020, China and ASEAN signed an agreement on Comprehensive Regional Economic Partnership, within the framework of which the world’s largest free trade zone (FTZ) was created; in addition to the PRC and ASEAN themselves, it also included Australia, New Zealand, South Korea, and Japan. The member countries of the new FTZ account for almost 30% of the world economy.

A year later, in November 2021, the level of China-ASEAN strategic partnership was officially raised to comprehensive.

On July 11, 2022, Chinese Foreign Minister Wang Yi met with ASEAN Secretary General Lim Jock Hoi in Jakarta, the capital of Indonesia. During the meeting, Wang Yi recalled that China is ASEAN’s largest neighbor and its main trading partner. The Chinese Foreign Minister also noted that ASEAN plays a priority role for Chinese foreign policy, and the PRC has always supported the development of this organization and its leading role in the region. According to Wang Yi, China is ready to continue working together with ASEAN for the common good.

The Chinese Foreign Minister also said that, given the tense international situation, China and ASEAN should be ready to resist the attempts of world powers to draw the region into a global geopolitical confrontation and force the Southeast Asian countries to join one or another bloc. Wang Yi was probably hinting at US activities.

In turn, ASEAN Secretary General Lim Jock Hoi spoke highly of China’s role in strengthening ASEAN and supporting its pivotal role in Southeast Asia, and also thanked China for its assistance in combating the COVID-19 pandemic and promoting economic recovery after the lockdown crisis. Lim Jock Hoi said that ASEAN hopes to further develop cooperation with Beijing.

It can be concluded that at the regional level, China’s interaction with the Southeast Asian countries is developing in line with Beijing’s plans. But there are also some countries within ASEAN with which the Celestial Empire has particularly good relations, for example, Cambodia and Laos. The latter, among other things, is united with the PRC by belonging to the socialist camp.

Another socialist-oriented state in Southeast Asia is Vietnam. However, it is difficult to call that country a full-fledged ally of the PRC, since there are territorial issues between Hanoi and Beijing, which even turned into a war in 1979. These contradictions are still relevant, and it is not surprising that Vietnam is developing relations with the PRC with caution. However, China is actively working to strengthen its influence in that country.

Shortly after the meeting with the ASEAN Secretary General, Chinese Foreign Minister Wang Yi met with Vietnamese Deputy Prime Minister Pham Binh Minh during the 14th meeting of the Sino-Vietnamese Steering Commission on Bilateral Cooperation, which was held in Nanning (PRC) on July 13, 2022.

Wang Yi made a number of proposals, such as bringing Sino-Vietnamese relations to a new level of strategic cooperation, intensifying the exchange of public administration experience, and developing economic cooperation. In general, according to the Chinese minister, both countries should work intensively to build a Sino-Vietnamese “society of a single destiny.”

Pham Binh Minh replied that relations with the PRC are one of the priorities for Hanoi, and that Vietnam is ready to cooperate with China in various fields and to contact it at a high level. However, in general, the speech of the Vietnamese official seems more restrained. Apparently, his country still treats the PRC with a degree of wariness. Nonetheless, it is noteworthy that according to available data, the PRC is the main trading partner of Vietnam now, while in 2019, the United States occupied this place. Such success of Beijing in relations with one of the most developed and independent ASEAN countries suggests that China’s influence in Southeast Asia is reaching a completely new level.

Petr Konovalov, a political observer, exclusively for the online magazine “New Eastern Outlook”.

 

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