With China’s economic clout still its “strongest card” in Southeast Asia, Beijing is continuing to gain prominence in all corners of the region as its leading external partner, according to a study released on Wednesday.
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According to the Lowy Institute’s Southeast Asia Influence Index, China has an overall score of 65 out of 100, a one-point lead over its nearest rival, the United States, making it the “most influential power” in six of the region’s 11 countries: Cambodia, Indonesia, Malaysia, Myanmar, Thailand and Vietnam.
The whole region is diversifying to avoid dependence on any one power and reduce spillover risks from an intense rivalry between the US and China, the Australian think tank said, but several countries are “highly exposed” to China in specific sectors such as tourism, investment and trade.
“China is the region’s leading export market – taking around 20 per cent of all exports, compared to 16 per cent going to the United States – and is responsible for around 26 per cent of the region’s imports,” said report authors Susannah Patton, Jack Sato and Rahman Yaacob.
“[China] is also an increasingly important source of private investment for the region, accounting for 21 per cent of new project investment in Southeast Asia over the past 10 years (2015-2024) compared to just 13 per cent over the 10-year period to 2017, when Japan was the largest foreign investor in the region.”
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The index, which takes stock of activities capable of generating influence between external partners and the region’s 11 nations, comprises five areas of measurement: namely, economic relationships, defence networks, diplomatic influence, cultural influence and regional engagement.
In many countries, especially Brunei, Cambodia, Indonesia, Laos, Malaysia and Myanmar, the United States is not an effective competitor to China