China steps up regional Asian investment to counter US influence

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The increased focus on investment in East Asia and Pacific nations comes as Washington rolls out its strategy of ‘integrated deterrence’ across the Indo-Pacific to counter China’s rise.

military leaders have been thick on the ground in South-East Asia to consult regional leaders about the AUKUS submarine plan. But analysts warn that support for economic development is lacking in Washington’s strategy.

Indonesia, for one, has gone some way to addressing this by providing corridors for foreign investment that bypass at least some bureaucracy. Power Construction Corp accounts for 22.3 per cent of BRI construction and is involved in a planned hydro project in North Kalimantan. China’s Contemporary Amperex Tech , responsible for 29.

Indonesia took in a record $US45.6 billion in foreign direct investment last year. Singapore contributed $US13.3 billion, followed by China’s $US8.2 billion, and $US5.5 billion from Hong Kong. Meanwhile, the three AUKUS nations contributed $US4.17 billion, with the US accounting for $US3 billion of this.

“The joke here is the Chinese have worked their way through a five-course meal and are onto dessert, while the West are still looking outside looking at the menu.“

 

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