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China's Rise in Mainland ASEAN


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tributaries in Laos account for 35% of the total flow. Laos uses a lot of of hydroelectric power resources to produce hydroelectric power. There are currently 46 hydroelectric dams in Laos, with still more being constructed. Laos expects to build 100 hydroelectric dams by 2020 (Thansetthakij News, 2017). The exportation of hydroelectric power is one of the major revenue sources for the country. In Laos, the proportion of electricity exported is more than 70%. The production of hydroelectric power in the Mekong region is a solution to reduce poverty. Therefore, the management of the Mekong River is very important to the Laotian government. Furthermore, China is the country with the largest proportion of investment in hydroelectric dams in Laos. The investment aid from China comes in through assistance in project construction as well as through supplying construction materials. The investment companies are large state-owned companies owned by the Chinese government, such as Sinohydro, China International Water and Electric Corporation, China National Heavy Machinery Corporation, and China’s state-owned subsidiary, China Southern Power Grid, which holds stock in many provincial companies (Ministry of Commerce of Thailand, 2011). The participation of Lao PDR in the Mekong Cooperation Framework has contributed greatly to the cooperation and relationship between Laos and China in many respects, in addition to Mekong River water resources management. Laos has also harvested tangible benefits from the LMC mechanism, including those in human resource development, infrastructure construction, public healthcare, and poverty reduction. Additionally, another important aspect is that Laos is a landlocked country and the Mekong River is a major link for Laos. Under the current framework, China has approved the development of various projects for Laos. At the second LMC Leaders’ Meeting in Phnom Penh, China approved 13 projects for Laos under the Lancang–Mekong fund, which are worth more than US$3.49 million. Moreover, the project will help promote the socio-­economic development of Laos, and thus further strengthen ties between Laos and China within the Lancang–Mekong mechanism (Xinhua News Agency, 2018c).

      China also attaches great importance to Laos’s position in the cooperation of the LMC. After the Second Leaders’ Meeting in Cambodia, Chinese Foreign Minister Wang Yi expressed his belief that in the next two years, as the co-chair countries, China and Laos would work closely to implement the consensus reached in January at the Summit and would vigorously plan for the next step (Xinhua News Agency, 2018f).

      The aim of Cambodia in the Mekong sub-region cooperation is to reduce poverty and to improve the quality of life of Cambodians in the area. Economic growth is the main emphasis of Cambodia. The Cambodian government views the Mekong cooperation framework as an increased opportunity to further develop economically and to strengthen international relations among countries in the Greater Mekong Sub-region. Cambodia particularly wishes to strengthen the relationship with China because China is a highly influential country in Cambodia. Between 1994 and 2014, China invested in Cambodia continuously and became the number one country with investment in Cambodia, accounting for 44% of all foreign investment or US$1.92 billion invested. The majority of Chinese investment was in infrastructure investment, bridge construction, and electric power investment, resulting in the growth and economic expansion of Cambodia. This is why the Cambodian government supports the cooperation projects fully. The Cambodian government hopes the projects will bring considerable benefits for the Cambodian people in a broad range of fields, from enhancing people’s livelihoods to capacity building in the fields of education, health, tourism, and ICT, to developing cooperation exchanges in Buddhism, and conserving and protecting cultural properties. Other tangible economic benefits could come directly from enhancing air travel in the LMC region, promoting the agricultural sector in addressing land degradation, as well as sustainable forest use and sustainable fisheries management in the Mekong sub-region (Xinhua News Agency, 2018d). Cambodia views itself as having the advantage of being a co-founder of this cooperation framework. With this advantage, Cambodia could shape development from the very beginning, co-creating the agenda and the various modalities for implementation. Since joining the LMC family in 2016, Cambodia has been an active supporter and enthusiastic participant of the mechanism. On December 21, 2017, China provided US$7.3 million from the LMC Special Fund to Cambodia for carrying out 16 projects in the kingdom, covering a variety of areas including agriculture, tourism, ICT, public health, education, research, water resources, and rural development, among others (Fei & Lu, 2018). These measures will provide strong support for poverty alleviation and socio-economic development in Cambodia.

      In Myanmar, following a landslide victory in the November 2015 elections, led by the National League for Democracy (NLD), a civilian government came to power. Therefore, Myanmar’s foreign policy has become more open and more connected to the world, mainly focusing on establishing friendly and close political relations with regard to international matters that may arise firmly on the side of genuine democratic values, identifying and cooperating with other countries on joint economic enterprises of mutual benefit. In particular, Myanmar tries to work together for the benefit of the region on issues relating to regional organizations and programs. The State Counselor of Myanmar, Aung San Suu Kyi, has expressed the view that “Myanmar had no enemies, but relations with neighbors were more sensitive than others and needed to be carefully handled” (Xinhua News Agency, 2015). For example, China has been building up its relationship with Myanmar since the last government. After she came to power, Suu Kyi visited China first instead of the US. This was believed to be a pragmatic choice given that the newly elected Myanmar government gave massive importance to China and showed that China had played an instrumental role in Myanmar’s foreign diplomacy and stability. At the same time, Myanmar needs to balance its relationship with India, the rival of China in Asia. Myanmar needs to avoid being drawn into conflict zones in their common areas of influence and to know how to adapt whenever these two giants confront one another.

      Myanmar needs to increase stability in international relations, especially with the powerful countries in the region. Therefore, joining the LMC has a positive impact for Myanmar. The country sees this framework as an opportunity to promote the relationship and cooperation with China without being involved in any conflict between China and India. Furthermore, the priority goals of the Myanmar government such as developing agriculture and improving infrastructure accord with the LMC objectives that emphasize economic cooperation, connectivity, and poverty reduction. Since state building is of paramount importance for the new government, Myanmar needs a massive amount of investment from foreign countries. Thus, joining in cooperation can positively help the economic development and national stability of Myanmar. China respects the position of Myanmar and hopes to increase input for the LMC, forging it into a new type of sub-regional cooperation mechanism, in a bid to jointly push forward sub-regional prosperity.

      Vietnam is located along the lower Mekong. Although the Mekong River in Vietnam is only 230 kilometers long, the river is connected to many tributaries in Vietnam. The Mekong River contributes nearly 60% of the water volume each year. Its outflow to the South China Sea is an important area of agriculture. It is the largest area of the country, and transportation goes to the South China Sea. As Vietnam is downstream of the Mekong River, the country has been affected by dam construction upstream, particularly in China and Laos. This has been a major obstacle to Vietnam’s agriculture, especially in the year 2016 when the Vietnamese government requested that China drain the water downstream to solve the crisis. This is why Vietnam is most concerned about the issue of water resources management and the environment in the Mekong that results from upstream activities. The relationship between Vietnam and China, on the other hand, is not the same as between other countries in the Mekong sub-region. Unlike Thailand, Laos, and Cambodia, the relationship between Vietnam and China is not as smooth due to disputes in the South China Sea. Participating in the Mekong cooperation framework, Vietnam hopes for a better development of water management in the Mekong River. The Prime Minister of Vietnam has stated that the LMC priorities will be given to hydro-meteorological statistics and information sharing, cooperation in response to drought and floods, and joint scientific research to construct reservoirs along the Mekong River. This cooperation will also be vital for infrastructure development that facilitates the flow of commodities, services and capital, and local people’s travel (Ganjanakhundee, 2018).

      Additionally, the aim of the LMC framework should also be an ­important key to restoring the relationship between Vietnam and China. For example, Beijing agreed to discharge water from March 15 to April 10, 2016, from a dam in Yunnan at the request from the Mekong Delta countries, especially Vietnam,