Mutual Benefits or Dominance: Assessing the Economic Relations between China and Southeast Asia

Abstract

In the light of evolving economic relations between China and Southeast Asia, the question of the fundamental nature of this cooperation assumes immense importance. Two contrasting perspectives delineate the nature of these economic ties, one depicting mutually advantageous connections, while the other speculates the economic benefits as being unilaterally in favor of China. The paper examines these two perspectives in detail and draws a conclusion that the two viewpoints will continue to coexist because of the presence of irrefutable evidence and arguments presented by each stance. Although most economic agreements between China and Southeast Asia have been of mutual benefit to both parties, boosting trade and investment, and promoting development, the threat of debt trap exists for some Southeast Asian countries like Laos which has become increasingly dependent on Chinese support due to its own political and economic deficiencies. This illustrates a critical point that the extent to which the Southeast Asian countries can benefit from Chinese investment depends on their own institutional competence and strategic policies.