Mekong region becoming a theatre of 'development wars' between Japan and China

Tokyo

THE apparent "development wars" between Japan and China intensified last weekend when Japan announced that it would extend 750 billion yen (S$8.2 billion) in bilateral development aid to the Mekong region of South-east Asia, where the Japan-dominated Asian Development Bank (ADB) is already an active player.

The move comes on the heels of the signing by 50 countries of Articles of Agreement establishing the China-led Asian Infrastructure Investment Bank (AIIB). It also follows Japanese Prime Minister Shinzo Abe's announcement of a US$110 billion "Partnership for Quality Infrastructure Investment" in Asia.

Because of its strategic importance, the Mekong region (embracing Cambodia, Laos, Myanmar, Thailand and Vietnam) could become an area of intense rivalry between Japan and China, and…