DBS Economics & Strategy : Understanding China : BRI tactics for Southeast Asia

Chris Leung, Economist - China & Hong Kong, DBS Bank

Key Highlights :

- Southeast Asia will be the first region to benefit directly from China's ambitious Belt and Road Initiative (BRI).

- The key artery along the BRI-Southeast Asia infrastructure corridor are the train routes. Amongst the three planned railway routes originating from Kunming, the most feasible, and the most important in Southeast Asia, is the central line going through Laos, Thailand, and Malaysia.

- Thailand is of strategic importance to China because of its central location in this route, which borders four countries.

- Malaysia is not only a key station on the centre railway line, but also a key stop of the new Maritime Silk Road.

- While the economic potential is enormous, the success of BRI in Southeast Asia will not rest on funding or capabilities; rather diplomacy fostering trust and cooperation among the concerned economies is key.

Source : Equity Bulls

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