By Shannon Tiezzi
China offers increased economic incentives for its Southeast Asian neighbors to overlook territorial disputes.
Chinese Premier Li Keqiang is in Myanmar this week for the China-ASEAN Summit, the East Asia Summit, and the ASEAN Plus Three (China, Japan, and Korea) meetings. While in Naypyitaw, Li pledged $20 billion in loans to Southeast Asia for regional infrastructure development. That’s in addition to $3 billion for the China-ASEAN Investment Cooperation Fund, which funds infrastructure and energy investments in ASEAN member countries, and $480 million to help fight poverty in Southeast Asia. China also promised preferential treatment to ASEAN investors under an expanded China-ASEAN free trade agreement.
The financial push is part of a plan to reassure ASEAN member states that China’s rise is beneficial for its neighbors and for the region as a whole. Several ASEAN members, most notably Vietnam and the Philippines, have long-standing territorial disputes with China, and Beijing’s recent emphasis on maritime prowess has led to more clashes in the region.
Read the full story at The Diplomat