ASEAN Perspectives:Sizing up the ‘OBOR’impact

In terms of China’s relationship with ASEAN, it should be no surprise that economiclinkages are blossoming on multiple fronts (think trade, investment, and tourism). TheOne Belt, One Road (OBOR) initiative adds yet another layer to this dynamic, whichaccording to the plans, has the potential to alter the economic landscape of the region.

    OBOR generally refers to conflation of the “Silk Road Economic Belt”, which flowsthrough the Eurasian landmass, and the “Maritime Silk Road” that links China to Europeby way of ASEAN, South Asia, and Africa (see Qu Hongbin et al, China Belt and RoadForum, and HSBC’s On the Silk Road series). ASEAN’s importance in OBOR is clear:Vietnam, Singapore, Thailand and Malaysia are among China’s largest trading partners inthe group; and ASEAN is inextricably intertwined with the Chinese economy via a deepnetwork of supply chains. Moreover, the region occupies a strategic position for Chinaseeing that a large share of its trade flows through the all-important Straits of Malacca.

    While some discount OBOR because of the lofty goals it sets to accomplish, or theunclear terms of some of the deals, it would be a mistake to discount it altogether. In fact,OBOR-related commitments for ASEAN