Mixed Motivations and Mixed Blessings: Chinese Investments in Southeast Asian Energy and Mineral Resources

Abstract

Energy and mineral companies play an important role in China’s economic engagement with Southeast Asia. Although not a preferred region for Chinese overseas resource investments, Southeast Asia offers distinct locational advantages to these companies and to the Chinese government. Countries in the region are close to or even immediately adjacent to China and, in some cases, have political, economic and ethnic ties that date back centuries. The region as a whole has significant reserves of different forms of energy and mineral resource which Chinese companies can exploit and, in some case ship back to China, or earn revenues by providing construction and other services. In recognition of these advantages, the Catalogue guiding outward investment issued by the Chinese government in 2004 listed a number of energy and mineral resources in Southeast Asian countries