Think Tank: China's Railway Diplomacy a Resounding Success in Southeast Asia

In 2015, China signed an agreement with Laos to construct a 420-kilometer railway between the capital Vientiane and the border town of Boten, which will connect directly with Yunnan Province in China.

Also in 2015, Indonesia chose China over Japan to build its first high-speed rail system. This 143-kilometer route connects Bandung and Jakarta. A year later, China and Malaysia reached basic terms on the East Coast Rail Link project. The railway project spans 660 kilometers, starting at Port Klang and extending along the east coast of Peninsular Malaysia, finally reaching Kota Bharu near the Thai border. That same year, China and Thailand agreed on their respective railway projects; the first phase involves building 253 kilometers of track between Bangkok and Nakhon Ratchasima, the largest city in northeastern Thailand.

When these agreements were initially signed, they reflected an ambitious vision for the region: China would play a central role as a provider of key technology, expertise, and financing in critical national infrastructure. At that time, the practicality of this vision was unclear. Nearly a decade later, it is becoming clearer.

The Vientiane-Boten line opened in 2021, while the Jakarta-Bandung line opened in 2023. The East Coast Rail Link in Malaysia is about 80% complete and is expected to begin operations in 2027. In Thailand, the railway connecting Bangkok and Nakhon Ratchasima is nearly 40% completed. The second phase, which includes a 335-kilometer railway from Nakhon Ratchasima to the border town of Nong Khai, received government approval earlier this year.

The East Coast Rail Link project in Malaysia is nearing completion, and Thailand’s projects are progressing. If the line really reaches Nong Khai by 2030 [or more likely a few years later], it will become an important rail artery passing through Vientiane, connecting southern China and Bangkok. These projects represent a total investment of approximately $40 billion in constructing over 1,800 kilometers of critical transportation infrastructure in a strategically significant and rapidly developing region.

Moreover, this does not seem to be the end of China’s railway development in Southeast Asia. Vietnam recently approved an $8 billion plan to build a new railway connecting northern Vietnam with China. Specific details remain unclear, but it appears they will seek financing from China for the project. It is highly likely that Indonesia will extend the high-speed rail from Bandung to the island of Java and eventually to Surabaya at some point in the future, although the exact timeline remains uncertain.

It is difficult not to compare China and the United States. Major economies in Southeast Asia have consistently refused to get involved in any broader Sino-American competition. They have clearly stated that they are willing to cooperate with any foreign partner who can provide what they need [such as investment, technology, and skill enhancement].

China is typically willing to meet at least some of these requirements. On the other hand, what has the U.S. offered? Tariffs, hardline tactics, and instability. Even before Trump’s potential reelection, U.S. investments in these projects often came with unacceptable conditions [such as the Just Energy Transition Partnership in Indonesia and Vietnam], or appeared in the form of private equity primarily aimed at extracting profits.

Source: Diplomatist

Original Article: https://www.toutiao.com/article/1830528087348231/

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