China and the World

The concept of connectivity has over the past decades become central to economic competitiveness, especially in a world of value chains. It now tends to have both a strategic dimension - in a renewed geopolitical context - and a sustainable dimension - with global warming. This is particularly true in the EU-Asia relationship. The strengthening of this connectivity, particularly in the case of transport infrastructure (maritime, rail, air and submarine), provides opportunities for trade in goods, services and data but also human interactions between the two regions. But it goes further with the Chinese Belt and Road Initiative (BRI). While Europe has for several decades paid considerable attention to connectivity within its political borders, nothing was preparing it to the impact of this multifaceted initiative. This is particularly evident for the three largest French metropolitan areas (Paris, Lyon and Marseille), which show different degrees of connectivity with China, depending on whether it is a maritime, rail, air or submarine route. While it is not possible to simplify the connectivity with China of each city to only one aspect, it nevertheless appears that Paris has a powerful advantage on the air route, Lyon potentially on the rail route and Marseille on the submarine route.

This commentary examines China’s Belt and Road Initiative and the US Indo-Pacific strategy as manifestations of an ongoing geopolitical rivalry in Asia and Southeast Asia and further details ASEAN’s potential to act as a strategic bridge for tamping down tensions and thereby promoting regional development. The Belt and Road Initiative and the Indo-Pacific strategy are cast as “dual-purpose” initiatives, reflecting both an economic and a strategic military dimension. This commentary analyzes these developments as part of an overall matrix and suggests that by virtue of its history, orientation and current economic aspirations, ASEAN can legitimately assume the role of “honest broker” to advance regional stability and commercial connectivity at this critical juncture.

This article examines a number of trade and investment areas in which trust-building needs to occur between China and its ASEAN Belt and Road Initiative partners in order to better realize the economic benefits promised by the initiative. A number of economic goals of ASEAN converge with those of the BRI, such as those relating to building physical, regulatory and digital connectivity, and this convergence provides potential for joint economic growth and cooperation. Some of ASEAN’s urgent infrastructure needs, for instance, could be met through ASEAN-BRI collaboration. However, a number of issues which have arisen in BRI-related projects within and outside ASEAN need to be addressed in a convincing way, if ASEAN and China are to better achieve such economic goals. These include building trust by fostering confidence that the BRI brings domestic trade and investment benefits, good governance and financial and environmental sustainability, and in the newer field of digital connectivity, by ensuring meaningful dialogs and actions on the use of existing and emerging technology in the BRI.