Tag Archives: Mekong fisheries

China needs to change its energy strategy in the Mekong region

This op-ed was first published at ChinaDialogue and thethirdpole.net on 7/16.

 Mekong bridge

At the end of this year cars and container trucks loaded with goods from China and Thailand will finally be able to drive across a multi-lane bridge spanning the Mekong River (known as the Lancang in China). The bridge will connect Chiang Rai province in Thailand to Bokeo province in Laos, effectively linking China’s highways stretching south from Beijing and Shanghai to those coming north from Singapore, Kuala Lumpur and Bangkok.

Funded by equal investment from the Chinese and Thai government, the completion of the bridge, which took ten years of planning and two years to build, is not without controversy. For many years Thailand held back investment due to an uneven distribution of benefits between China, Laos and Thailand. Also on the Thai side, the NGO Rak Chiang Khong claim the bridge negatively impacts the local Golden Triangle economy and will ruin Mekong fisheries.

The Golden Triangle Bridge serves to highlight the challenges facing China, as the country’s new leadership attempts to balance its slowing and volatile economy and deliver domestic stability by maintaining peaceful economic relations with its neighbours.

China’s regional strategy

“In 2012 China’s growth in trade and outward investment with the five other Mekong countries of Myanmar, Laos, Thailand, Cambodia, and Vietnam surpassed its trade and investment growth in ASEANcountries,” said Xu Ningning, chairman of the Greater Mekong Subregion (GMS) Business Council. “Greater growth rates will continue with increases in regional cooperation and win-win investment opportunities.”

For the past three years China’s GMS provinces of Yunnan and Guangxi have posted growth rates of 12-15%, the highest of China’s localities, and arguably China’s economic rise has also helped deliver high growth rates among Mekong countries.

The end of the Cold War in the 1990s created a favourable environment for China to develop its economic cooperation strategies toward the Mekong region. The blurring and opening of once inviolable borders encouraged traders on both sides of the China-Southeast Asia frontier to appeal to local and national governments for better conditions for trade and migration. The Chinese government responded with twenty years of state-led trade liberalisation and investment policies to promote regional cooperation in state and private sectors.

China’s economic cooperation strategies towards its four Mekong neighbours has dovetailed nicely into a strategy that fits China’s current development needs. Liu Jinxin, a policy analyst and logistics expert says, “Unlike the US which leads the world in finance and IT, both high-value service-oriented industries, China is the world’s factory, producing goods to drive the growth of its growing middle class and serving export markets around the world. To survive, the Chinese ‘factory’ needs inputs like energy and raw materials.” Continue reading

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