China s State Capitalism in Southeast Asia and its political implication Lili Yulyadi Arnakim (a*) and Sultan Sadad Rafi Zulkarnain1(b)
a) International Relations Department, Faculty of Humanities, Bina Nusantara University, Jakarta, Indonesia 11480
*lili.yulyadi[at]binus.edu
b)International Relations Department, Faculty of Humanities, Bina Nusantara University, Jakarta, Indonesia 11480
Abstract
This paper aims to analyse the influence of China^s state capitalism in Southeast Asia, especially ASEAN member states. The amiable economic relations between China and ASEAN was mainly reflected in the ASEAN-China Free Trade Area (ACFTA) that was signed in 2002 and then the ASEAN-China Trade Pact in 2015-also more recently the Regional Comprehensive Economic Partnership that was signed in 2020. However, it can be said that the relationship between the two reached a whole new level when China began embracing the ^neighbourhood diplomacy^, which ASEAN was among the actors with whom China wished to become a ^good neighbour^ to, within the frame of ^community of common destiny^- the Belt and Road Initiative that was launched in 2013- and more generally, the ascendancy of Xi Jinping as president. Using the primary and secondary resources, this paper finds that state capitalism has proven to be more than just a means to realize a solid domestic economy. With a proper execution, it can turn state owned enterprises into giant global corporations that, in turn, could extend its host country^s presence worldwide. China^s case in Southeast Asia did prove just that. And more than economic gains, China was able to gain political and diplomatic clout through all the investments it made abroad, especially ones in the framework of the BRI.
Keywords: China, State capitalism, national interest, and Belt Road Initiative (BRI) and ASEAN.
