CCG Experts Examine Political and Economic Risks for Investment in Southeast Asia

The newly-established CCG “One Belt, OneRoad” Institute held on June 23rd the second of its series of seminars on the challenges and opportunities of investing in the countries along the “One Belt, One Road”, with a focus on Southeast Asia.

Moderated by CCG President Dr. Wang Huiyao,the seminar brought together scholars from a number of first- class academic institutions, including the National Institute of International Strategy and the Institute of Contemporary China Studies, both affiliated with the Chinese Academy of Social Sciences (CASS), the Institute of Modern International Relations at Tsinghua University, the Academy of Military Sciences, China Institute of International Studies, and China Institute of Contemporary International Relations. On the CCG side, Vice President Frances Sun and Executive Director of the “One Belt, One Road” Institute Chu Yin also joined in the discussion.

CCG’s “One Belt, One Road” institute was launched on May 18th of this year in response to the Chinese Government strategic planning for these initiatives.  At the second China-Southeast Asia High-level People-to-People Dialogue held earlier in June, over 200 representatives from China and 11 countries in the region jointly issued a declaration to pledge their support to the “One Belt, One Road” initiatives. Acknowledging the crucial role that Southeast Asian countries play in this ambitious scheme, CCG’s “One Belt, One Road” Institute focused the second monthly seminar on discussing the situation in that specific region.

The scholars examined the investment environment in Southeast Asia from various aspects, including political and economic risks, Sino-ASEAN relations, and NGO activities in the region, offering particular insights about the impact of the South China Sea issue on the Maritime Silk Road and the opportunities to work with ASEAN, a loosely integrated economic organization. Regarding the South China Sea issue, seminar participants believe that the disputes did weaken the mutual trust between China and its ASEAN neighbors and increase the political risks for China to invest in the region. Beyond that, the issue may become the biggest threat toChina’s peripheral security environment.

The scholars agreed that compared to other regions along the Belt and Road, Southeast Asia has a fairly secure and stable investment environment. According to CASS’ Country-risk Rating of Overseas Investment from China, the Philippines is ranked as having the lowest risk, followed by Indonesia, Argentina, Malaysia, Mexico, and China. However, those with lower economic risks may have higher political risks. They also addressed the questions from audience regarding specific types of hazards and possible solutions.

 

Next, the seminar series will zoom in on examining the investment environment in other regions as well as the political,economy, legal, and social issues in selected countries. All of the insights generated by these gatherings and policy recommendations will be compiled in CCG publication and policy advisory reports as reference for the government and business community.

LocationBeijing

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