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Chinese investment into ASEAN carries political risks

Wednesday, May 24, 2017

Subject

Chinese investments into ASEAN countries.

Significance

Beijing's 'One Belt One Road' (OBOR) summit concluded on May 15; leaders from 28 countries attended. China's government will now inject another 124 billion dollars into the OBOR initiative. Much will flow into services and infrastructure in ASEAN countries, but there is unease in some quarters over the region's growing dependency on Chinese money.

Impacts

  • Chinese investments into ASEAN countries will likely face increasing scrutiny.
  • Therefore, Chinese firms face making extra provision for corporate social responsibility.
  • ASEAN host governments could be politically vulnerable if the flow of Chinese money shifts or reduces.
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