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China Is Changing Southeast Asian Neighbors At An Unprecedented Rate

Jan 16, 2017

China is changing Southeast Asian neighbors at an unprecedented rate

China's investment is transforming its Southeast Asian neighbors at an unprecedented pace, while Cambodia, Laos and Myanmar are developing into China's larger export destinations, according to a report on Dec. 5.

Reported that China increased investment in Southeast Asian countries, to promote rapid economic growth in these countries, while Chinese enterprises can also find a low-cost alternative to the capacity to transfer from the country. In this context, China's increased investment in Southeast Asia will help China and the region to adapt to this new trend, as Trump, the newly elected President of the United States, is committed to domestic affairs and the commitment to the region will be reduced. New situation.

"China sees these countries as a place to sell their products and get a good return on investment," said Edward Edward, an economist at Standard Chartered Bank in Singapore. "And the rising domestic production costs for Chinese companies further strengthen this investment trend. "

From railway to real estate, China has almost all of Cambodia, Laos and Myanmar and other Southeast Asian countries have invested.

The landlocked country Laos last year started construction of the old railway, the total length of 414 kilometers, will extend from the border to the capital Vientiane. According to the Xinhua News Agency, the railway is part of China's "all along the way" plan, will cost 5.4 billion US dollars; has been transformed into a democratic country of Myanmar is the liberalization of economic development, the use of market reforms. Aung San Suu Kyi, the country's real leader, soon went to China to visit China and speed up cooperation with China. China is now Myanmar's largest trading partner, trade accounted for Myanmar's total trade volume of 40%.

In addition, China's relations with Cambodia are also very close. Last year, the trade volume between the two countries rose to $ 4.8 billion, twice that of 2012. Cambodia plans this year is expected to grow 7% of the economy, while the Laotian 7.5% target. The fast-growing economy has raised the level of national income in these countries and reduced poverty. According to the latest World Bank data, Cambodia in 1994, the daily cost of 1.9 US dollars the number of people accounted for 30% of the national number, and now the proportion dropped to 2.2%. The poverty rate in Laos fell from 22.9 per cent in 1992 to 16.7 per cent today.

Derek Heisel, chief economist at China Beige Book International, a Washington, DC-based research firm, says China's massive inflows of funds to Cambodia, Laos and Myanmar are backed by highly favorable conditions to support operations by Chinese companies Of construction projects, especially in Laos. He said that since 2005, China's construction and investment in Laos accounted for 15% of GDP in Laos, with the exception of China, other countries can not provide so much financial support.

Cambodia, Laos and Myanmar are working with Chinese suppliers to buy semi-finished products from Chinese suppliers 'factories and to sell consumers' clothing and shoes, often made by Chinese companies or companies supported by Chinese companies. International Monetary Fund data show that China's imports from these three Southeast Asian countries, the total amount of clothing and shoes in five years has doubled.