Asean Business logo
SPONSORED BYUOB logo
SUBSCRIBERS

Inside China’s quiet reboot in Cambodia, Laos and Myanmar

A slowing economy, local crises and global trade tensions complicate Beijing’s approach to Asean’s most aid-dependent states, turning once bold bets into calculated moves

Evan See
Published Thu, May 29, 2025 · 12:00 PM
    • The Funan Techo Canal in Cambodia, which broke ground in late 2024, is intended to provide access to the Gulf of Thailand from the Cambodian capital of Phnom Penh.
    • The Funan Techo Canal in Cambodia, which broke ground in late 2024, is intended to provide access to the Gulf of Thailand from the Cambodian capital of Phnom Penh. PHOTO: AFP

    [SINGAPORE] Beijing is selectively reviving big-ticket infrastructure projects in South-east Asia’s most aid-dependent nations, restarting Cambodia’s stalled China-backed canal while treading more cautiously in debt-laden Laos and conflict-ridden Myanmar.

    Dr Jayant Menon, visiting senior fellow at the Iseas-Yusof Ishak Institute, said: “While there was a clear trend away from large-scale projects before the pandemic, these have made a return, driven by concerns over China’s economic slowdown.”

    This shift underscores the increasingly fraught trajectory of China’s Belt and Road Initiative (BRI) in South-east Asia’s least-developed economies, as it continues to weigh strategic gains in Cambodia, Laos and Myanmar against rising debt, political risk and global scrutiny.

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    Copyright SPH Media. All rights reserved.