China with Lancang - Mekong… 45

China with Lancang - Mekong cooperation: current situation and prospects

Do Tien Sam Prof. Dr., Institute of Chinese Studies, Vietnam Academy of Social Sciences; Email: [email protected] Dinh Huu Thien PhD., Hanoi National University of Education, Ha Nam Branch. Received February 1, 2019; published June 25, 2019 Abstract: China is the upstream country of the Lancang - Mekong River which fl ows through Myanmar, Laos, Thailand, Cambodia and Vietnam before draining into the East Sea. Therefore, the cooperative attitude is shown by the Chinese has played an important role in sustainable exploitation and development of this river. This paper presents and analyses China’s guidelines and policies in Lancang-Mekong cooperation both at national and local levels, from which some preliminary remarks and assessments are drawn. Keywords: China, Lancang - Mekong River, International Cooperation

I. Introduction II. China’s National Stance and Policy on Lancang - Mekong is an important river in Lancang - Mekong Cooperation Asia, originating from China’s Qinghai - In 2012, Thailand came up with the initiative Tibet Plateau. It is called Lancang River in of the Lancang - Mekong Sub-region China, while its downstream, running across cooperation, which was warmly welcomed Myanmar, Laos, Thailand, Cambodia, by China. China has started its role in the Vietnam, and fl owing into the East Sea, Lancang - Mekong Cooperation since 2014. is called Mekong River, measuring 4.909 At the 17th China - ASEAN Summit held in kilometres in length, covering an area of Myanmar’s Naypyidaw on 13th November 795.000 square kilometres. (http://vnmc. 2014, Chinese Premier Li Keqiang stated: gov.vn/neusdetail/101/luu-vuc-song-me- “For the promotion of ASEAN’s regional cong-tai-viet-nam.aspx). development, China expresses its positive China is the upstream country of the response towards Thailand’s initiative Lancang - Mekong River. Thus, the within 10+1 framework to discuss the cooperative attitude of China plays the establishment of Lancang - Mekong central role in sustainable exploitation and dialogue and cooperation mechanism” (Li development of this River. Keqiang, 2014). 46 Social Sciences Information Review, Vol.13, No.2, June, 2019

Since 2014, the Lancang - Mekong transport complex, consider opening Cooperation Framework has held three border economic zones, industrial zones, Leaders’ meetings, three working group investment zones, transport link, through meetings, and one Foreign Ministers’ which constantly improving the Lancang meeting (FNM). In November of 2015, at - Mekong infrastructure. Beside, China the fi rst FNM, all parties offi cially declared would establish a fund for preferential loans to launch Lancang - Mekong cooperation and 10 billion USD quota loans, including process, and agreed on cooperation in three 5 billion preferential loans for the buyers, key areas of political security, economy and 5 billion reserved to production capacity sustainable development, and humanity cooperation projects, etc. society. Third, on the implementation of the UN In particular, on 23rd March, 2016, China Agenda for Sustainable Goals, China proactively held the fi rst Lancang- Mekong would prioritise 200 million USD of the Cooperation Leader’s meeting in Sanya, South - South Cooperation Aid Fund to Hainan Province, under the theme of assist fi ve countries in fulfi lling the UN’s “Shared River, Shared Future”. In his 2030 Agenda for Sustainable Goals. At the speech, Chinese Premier Li Keqiang same time, a fund would be established affi rmed: “The Lancang - Mekong for the Lancang - Mekong Cooperation, Cooperation is an useful complement to within 5 years (2016-2021), to off er China - ASEAN cooperation framework, 300 million USD cooperation projects conducive to promoting socio - economic for small and medium enterprises of 6 development of the member States, countries. China sought, together with narrowing the development gap, and the Mekong countries, to establish the building a new version for China - ASEAN Environmental Cooperation Center and full-round cooperation. This is also a new Lancang - Mekong Water Resources practice of the South - South cooperation, Cooperation Center, etc., and strengthen demonstrating our fi rm determination to cooperation on prevention of trans-border work together to materialize the United transmitted diseases, etc. Nations’ 2030 Agenda for Sustainable Fourth, fi ll the gap for people-to-people Goals.” Accordingly, Premier Li made four exchange. China desired, together with cooperation proposals (Li Keqiang, 2016), other Mekong countries, to set up diverse including: channels for people exchange in areas of First, together form a community of shared education, technological science, culture, destiny among the Lancang - Mekong tourism, youth, etc. For 3 years (2016- countries. 2019), China has off ered 18,000 government Second, strengthen connection and scholarships and received 5,000 people cooperation on production capacity, coming to China for training; meanwhile accordingly, China sought to align it has considered establishing Vocational development strategies of the other Training Centre for the Mekong countries. countries, expedite critical projects, In addition, China proposed to found the such as China - Laos, China - Thailand Integrated Law Enforcement and Security railways, China - Myanmar sea and land Cooperation of the Lancang - Mekong China with Lancang - Mekong… 47

River to set up joint law enforcement capacity cooperation in areas of railways, operations and employee training. highways, ports, airports, etc. also appeared After that meeting, the Lancang - Mekong promising. cooperation has gone full-fl edged with Third, strengthen cooperation in areas a number of projects completed and of agriculture. China does not pursue developed. On trade, China has become the protectionist policy and seeks to import biggest partner of Cambodia, Myanmar, more high quality agricultural products Thailand, and Vietnam, and the third biggest to meet diverse domestic consuming of Laos. Bilateral trade between China and demands. China would support domestic 5 Mekong countries reached 220 billion enterprises to partner up with the USD in 2017, increased by 16% compared Mekong countries to process agricultural to 2016. China’s foreign direct investment products, improve added value and into the 5 countries accumulated to 42 competitiveness, and together approach billion USD, 20% rise in 2017. Notably, a third party’s market. At the same time, after the fi rst Leaders’ meeting, fl ights from this country also seeks, together with the China to the 5 countries peaked at 330, with others, to delve in agricultural technical 30 million turnovers in 2017 (Li Keqiang, cooperation, establishment of agricultural 2018). technical laboratory, facilities for technical On 10th January, 2018, at the second experiment samples; agricultural quality Leaders’ meeting held in Phnom Penh standard, prevention of diseases, etc. (Cambodia), Chinese Premier Li Keqiang and founding of the Lancang - Mekong continued raising certain points as follow Agricultural Cooperation Centre to (Li Keqiang, 2018): establish the playground for technical First, eff ectively cooperate on water exchange, integrated research, agricultural resources. All parties should value investment and trade. sustainable development of water resources, Fourth, bolster human resources formulate “5-year Action Program on Water cooperation. In 2018, China off ered 2.000 Resources Cooperation”, promote the role short-termed and in-service fellowships, of the Water Resources Cooperation Centre, 100 four-year undergraduate scholarships, hold water resources cooperation forum, invited numerous senior and mid-level intensify policy dialogues, information cadres to participate in research courses exchange, technical assistance, and on agriculture, health, water resources, etc. create the playground on water resources China proposed an initiative to establish cooperation for shared contribution and the Lancang - Mekong integrated education shared benefi ts. working group on superstructure designs in Second, strengthen cooperation on bilateral education cooperation; assist the production capacity, such as water resources Mekong countries with the establishment infrastructure. China would support its of Lancang - Mekong Vocational Education enterprises in building a series of dams, Centre. reservoirs, and water and irrigation works Fifth, enhance health cooperation. Within in partnership with the Mekong countries the possible scope, China assists the other for mutual benefi ts. Beside, production countries with improving health services 48 Social Sciences Information Review, Vol.13, No.2, June, 2019 system, including construction of hospitals, was 1,788.112 billion CNY; exports and community health centres, etc. In 3 years imports value were 197.312 billion CNY, (2018-2020), China would carry out ranked 5th in the country (Kunminh Daily 100 health aid projects for the Mekong News, 28/01/2019). countries, etc. In particular, with its upstream advantages, In short, at the national level, albeit Yunnan has implemented the development China’s late participation in the Lancang strategy called “Prosperous Water, Fertile - Mekong cooperation framework, it is an Land”, which means taking advantages of active and proactive country to voice up upstream water resources for development. various initiatives covering issues of socio With the 1,216 kilometre long river - economic, culture, education, tourism, running across Yunnan, the province has environment and non-traditional security, constructed a series of dams, lakes, and etc. This serves an objective to lead the especially 7,092 reservoirs (water storage game in this region. lakes) of many kinds (Yunnan Daily News, III. China’s Local Stance and Policy on 8/6/2019). Lancang - Mekong Cooperation From 4th to 5th July, 2005, the second China has two provinces bordering Mekong Greater Mekong Sub-region Summit was countries, which are Yunnan province and held in Kunming (Yunnan province, China) Guangxi Zhuang Autonomous Region (here with a theme of “A Stronger Partnership in below referred as Guangxi). Therefore, for Common Prosperity”. The summit prior to the national-level engagement, the issued the Kunming Declaration, which Chinese Government had paved the way broadened sphere of infl uence of China for the local-level engagement of these in general and Yunnan in particular on the two provinces/regions with the Mekong Greater Mekong Sub-region cooperation. countries. In 2017, the Lancang - Mekong Sub-region 1. Yunnan Province and the Lancang - Research Centre, Centre for Diplomatic Mekong Cooperation Research on adjacent countries (under Yunnan province is located in the upstream Yunnan University), collaborated with region of the Lancang - Mekong River, the Social Sciences Academic Press to covering an area of 390,000 square publish “Report on the Lancang - Mekong kilometres, ranked 8th among Chinese Development Cooperation”. Accordingly, provinces/zones, with the population of Yunnan takes a proactive role in the more than 48 million (2017 estimate) national development strategy Belt and (See: https://zh.wikipedia.org/wiki/%E4 Road with the purpose to transform Yunnan %BA%91%E5%8D%97%E7%9C%81). into a centre with spill-over eff ect on South Originally, Yunnan was a poor province, and Southeast Asia (Blue Book on Lancang yet thanks to reform, opening up, and - Mekong Cooperation, 2017). cooperation with the Mekong countries, On the offi cial stance, Yunnan’s 2018 Yunnan has become a middle developed working report identifi es: the Province province in China. In 2018, its economic would support overseas-bound enterprises growth reached 8.9%, ranked 3rd in the for construction of a series of industrial country, with gross domestic product zones, promote international production China with Lancang - Mekong… 49 capacity cooperation, support the Thereby, Yunnan has seen Belt and formation of transnational transport Road strategy as a good opportunity corporations, etc., increase agricultural for its enterprises to accelerate foreign product exports, develop processing and investment, particularly into Mekong transit trade; establish overseas trade Sub-region countries in the areas of centres, through which promote Yunnan’s agriculture, construction of transport products going overseas; consider trans- infrastructure, and production cooperation. border currency reform, innovation of For example, Yunnan Construction and trans-border currency operation, bolster Investment Holding Group Co. Ltd. (In the internationalization level of the short: Yunnan Construction Corporation) Chinese Yuan Renminbi1. is considering signing a contract on Before that, the thirteenth 5-year master construction of highways and international plan of the Province had affi rmed: trade centre in Laos (See: http:// Proactively serve and participate in Belt www.tlzgs.net/news/detail/id/117.html). and Road strategy of the country through 2. Guangxi Zhuang Autonomous Region activities, such as promoting construction and the Lancang - Mekong Cooperation of infrastructure of railways, highways, Although Lancang - Mekong River does airways; expediting manufacture of spare not fl ow through this region, yet since parts and international production capacity 2005, Guangxi has got the approval of cooperation with South and Southeast Asian the Chinese Government to take part Countries; promoting the Province’s central in the Lancang - Mekong Cooperation role in building Bangladesh - China - India Framework. Unlike Yunnan, Guangxi - Myanmar, China - Indochinese Peninsula borders on land and at Tonkin Gulf with economic corridors; helping industries, Vietnam. Guangxi area is 236,700 square such as cement, steel, etc., move their kilometres, with population of 48,38 production overseas; taking full advantages million in 2016, including 12 ethnicities of the Chinese population, overseas Chinese accounting for 37.94% total population, of in terms of capital, technology, and social which Zhuang ethnic group makes up for infl uence, to access the South, Southeast, 32.15% (according to population statistical and West Asian markets; expediting the survey of 2010); many ethnicities live along building of trans-regional electricity the China - Vietnam border. Previously, network connecting to the neighbouring Guangxi was a poor region, yet ever since countries; given electricity resources in the reform and opening up, Guangxi has risen Greater Mekong Sub-region, building the to the middle developed province in China. Electricity Exchange Centre for South and In 2017, its economic growth was 7.3%, Southeast Asia. surpassing the country’s average growth, gross domestic product was 2,039.625 billion CNY, GDP per capita exceeded 6.000 1 Government Working Report presented by USD (http://silkroad.news.cn/2017/1026/ Governor Ruan Chengfa in the fi rst meeting session 65282.shtml) of the thirteenth People’s Congress of Yunnan on 15th October, 2018, Yunnan Daily News, 2nd On participation in the Lancang - Mekong February, 2018. Cooperation, Guangxi raises the issue of 50 Social Sciences Information Review, Vol.13, No.2, June, 2019 connecting the Action Program Belt and Mekong Cooperation is a step forward to Road, taking Guangxi as the main lead to materializing their ambitious objectives. promote connection of industries among Beside, maintaining a friendly and stable the domestic region, the Eastern region, relation with the Mekong countries helps and Indochinese Peninsula, erect Nanning ensure China’s Western and Southern - Singapore corridor as the pillar for China security. The Western region of China - Indochinese Peninsula economic corridor, is lagging behind in terms of socio - etc.; implement organic combination of Belt economic growth and facing potential and Road, Two Corridors, One Belt, and risks of domestic insecurity due to three Greater Mekong Sub-region Cooperation, doctrinisms: secessionism, religious etc.; proactively participate in the Greater extremism, and terrorist extremism. Mekong Sub-region electricity network, Believers of such doctrinisms normally cooperate with ASEAN countries in areas operate through the Mekong countries or of coal, oil, hydroelectricity, etc. (See: refer to a third country for training, then http://silkroad.news.cn/2017/1026/65282. return to China to organize terrorist acts. shtml). Finally, Southeast Asian continent is an Hence, given particularities of each region, area where China’s competitors, especially the two provinces/regions, Yunnan and the United States and its regional allies, Guangxi of China, have played a positive seek to contain the rise of China, which role in the Lancang - Mekong Cooperation, can challenge the hegemony of the U.S. especially in eff orts to connect it to Recent global development has shown a the national strategy Belt and Road, sign of “cold confrontation” or “Cold War accordingly, to promote development mentality” just got started, accordingly, the cooperation on transport infrastructure, U.S. and the West will move heaven and trade and investment, education, culture earth to contain Russia’s reclamation under with the Mekong countries, etc. V. Putin in Europe and China’s rise under IV. Refl ection, Assessment and Proposals Xi Jinping in Asia. Therefore, China cannot 1. Preliminary refl ection and assessment aff ord being idle and inactive. Through studying China’s stance, policies, 1.2. China proposes and implements and practice on Lancang - Mekong initiatives for promotion of cooperation in Cooperation at national and local levels, the Lancang - Mekong region with a view we come up with certain preliminary to materialize above objectives. refl ections as follow: On politics, insisting on “shared water”, 1.1. China’s engagement in the Lancang - China has intensifi ed its eff orts to Mekong Cooperation serves its strategic communicate, mobilize, and persuade geopolitical objectives. for other Mekong countries’ cooperation Geopolitical location of the Southeast to build a China - Lancang - Mekong Asian continent may open the way to Common Community of shared destiny. the Pacifi c and Indian Oceans for China. In nature, this is an essential diplomatic Therefore, with the rise of its hard power, policy of China, which Secretary General, China seeks to widen sphere of infl uence President of China, Xi Jinping, has voiced abroad. Engagement in the Lancang - up and pursued, that is Community of China with Lancang - Mekong… 51

Common Destiny, which he considers in a broader and more permanent context. “the Chinese approach” and “the Chinese All of these aim at “deepening ties with the wisdom”. In addition, it also fi nds it neighbouring countries” as indicated in the place in China’s good neighbour foreign Instrument of the XIX National Congress policy of the new era as the Instrument of the Chinese Communist Party. of the XIX National Congress of the On culture and society, along with Chinese Communist Party indicates: promotion of economic cooperation, China “Deepening relations with neighbouring will accelerate investment for training countries”. Among China’s neighbouring and fostering of cadres capable of good countries, ASEAN, including the Mekong linguistic skills, comprehensive and deep countries, are considered the most research ability with regard to the Mekong important. Therefore, China will bolster countries; send many communication comprehensive cooperation in various cadres and people’s institutions to the areas with the Mekong countries. Mekong countries for learning and On economics, this is seen as “a carrot” exchange purposes. In particular, new which China “generously” gives to sub- fl ights to provinces/cities between two regional countries. Prospectively, a series parties will be launched, paving the way of mega projects will be carried out with for their people, including businesses, a view to combine China’s Belt and Road to navigate for tourism and investment initiative and development strategies of the opportunity seeking. Mekong countries, notably the operation 1.3. Many of China’s projects are faced of oil pipelines from West Myanmar port with critics from the Mekong countries, to Kunming, China; China - Laos, China along with containment by powers outside - Thailand railways, etc. In the recent the region given its hastiness in pursuing leaders’ meeting within Lancang - Mekong the ambitious objectives, together with a Cooperation in Cambodia, Chinese lack of coordination, even competition, Premier Li Keqiang emphasized: “The among corporations of interests from both era of high speed railways” has started. sides. Coupled with that, forums, conferences, Practice has shown that China’s huge exhibitions, research and training centres, projects in the Mekong countries, for many study fellowships and scholarships to reasons, are faced with opposition of the China, etc. are promoted pompously receiving countries, such as the Myanmar by China (at national and local levels) oil pipelines project, China - Laos, towards the Mekong countries. Strikingly, China - Thailand railways, Cambodia’s China is not short of infrastructure links Sihanoukville port economic zone, etc. It building projects, yet its bigger ambition not only hurts economic interests of both is to construct both small and huge sides, but also bruises China’s national strategic economic corridors connecting image and bilateral relation between China to the Mekong countries, such as China and other Mekong countries. - Laos economic corridor, Cambodia’s In addition, the ambitious rise of China development strategy, etc., China - with its grand project Belt and Road has Indochinese Peninsula economic corridor challenged the hegemony of the U.S., as 52 Social Sciences Information Review, Vol.13, No.2, June, 2019 well as threatened maritime and overfl ight Viet Nam should persist its foreign policy security at the East Sea. It urges the U.S., on independence, self-reliance, further its allies and other regional players with multilateralization and diversifi cation of aligned interests at diff erent levels to foreign relations, respect of the Mekong collaborate and cooperate in order to countries’ choice, keep the balance, and contain China. Apart from economic and refrain from siding with any party in the political benefi ts, the recent engagement power play in the region. of Japan and South Korea in the Greater 2.2. Solutions Mekong Sub-region countries serves On political diplomacy, given its the purpose of competition for sphere of geostrategic location, with the front of infl uence against China in this region. the Mekong countries overlooking the Notably, the Indo-Pacifi c strategy set forth Pacifi c Ocean, Vietnam should take the by the U.S. recently is headed in the same bridging role in connecting horizontal direction for containment of Belt and Road development among the Mekong countries, strategy and the rise of China. vertical development between China and 2. Proposals and solutions the Mekong countries, through which it Through study, preliminary refl ection may take positive steps to fl exibly propose aforementioned, we make concrete and implement various initiatives, such proposals in the climate of China as: forum, exhibitions, tourism, cultural strengthening the Lancang - Mekong exchange, education, sports, cuisine, Cooperation as follow: fashion, etc. at the national and local levels. 2.1. On mindset On economics, Vietnam should avail itself First, China’s increasing engagement in of big powers’, such as China, the U.S., the Lancang - Mekong Cooperation serves increasing cooperation with the Mekong its needs for development and Southern countries to boost its labor productivity, security as well as regional competition competitiveness and ability for international against the U.S. and its allies. integration. Second, given the need for development, On infrastructure, to pave the way for the a number of Mekong countries have Mekong countries to the Pacifi c Ocean, agreed on cooperation with and connection Viet Nam should enlist the support of between their development strategies and Japan, South Korea and international China’s Belt and Road. organizations to invest in East - West Third, the U.S. and its allies have intensifi ed transport highways connecting to other eff orts to cooperate with the Greater Mekong countries. At the same time, Mekong Sub-region countries to not only Viet Nam may consider port investment, help boost development, reduce reliance on transform into trade ports as its growth China, but also contain China’s rise. factor with spillover eff ect on the Mekong Fourth, in the climate of cooperation countries. As a result, it helps boost and competition, mutual containment economic growth, Viet Nam’s international between China and the U.S. in relation to image in relation to big powers, cultural the Mekong countries has been rising, in soft power in the international and regional which advantage is tilting towards China, arena. China with Lancang - Mekong… 53

On national security, in the cooperation unexpected factors, Viet Nam should avail with China, particularly in connection with its geostrategic location for bolstering China’s Belt and Road and Two Corridors cooperation with regional countries and One Belt strategies, Viet Nam should stay big powers, and proactively address cautious in selecting projects qualifying for negative eff ects from the cooperation economic development and national security and competition among big powers. The requirements. In addition, in relation to Southeast Asia of peace, stability and two neighboring countries, Cambodia and development is of great importance to not Laos, on the one hand, Viet Nam should only development but also national security respect their choice of development of Viet Nam  partner; on the other, it should follow up, gather information, and proactively address References fast-changing developments on strategic 1. Blue Book on Lancang - Mekong connection between China’s Belt and Road Cooperation (2017), http://www.ssap. and development policies of those two com.cn/c/2017-12-28/1064554.shtml countries, as well as “expediting to expand 2. Committee on Reform and the territory” and “expediting to build the Development, Ministry of Foreign sea power” as indicated in the Instrument Aff airs, Ministry of Finance of People’s of the XIX National Congress of Chinese Republic of China, National Report on Communist Party; its impacts or infl uence Economic Cooperation Between China on Vietnam’s national security. and the Greater Mekong Sub-region V. Conclusion countries, http://www.mfa.gov.cn/ Given the location and importance of the mfa_chn//ziliao_611306/tỵt_611312/ Southeast Asian continent, China has zcwj_611316/t419061.shtml strenuously pushed for cooperation with 3. Government Working Report, the Mekong countries, and considered presented by Governor Chen Wu in the it a priority in good neighbor foreign fi rst meeting session of the thirteenth policy. The Mekong countries, such as People’s Congress of Guangxi Laos, Cambodia, Thailand, have availed Zhuang Autonomous Region of China themselves for development. However, (25/01/2018), Guangxi Daily News this is also the strategic competition zone (6/02/2018). of big powers, China’s rising infl uence in 4. Government Working Report, the region and in competition with the U.S., presented by Governor Ruan Chengfa Japan. On the other hand, it is the zone of in the fi rst meeting session of the the U.S. and Japan’s choice to compete and thirteenth People’s Congress of Yunnan contain China’s rise. Thereby, it paints a (15/10/2018), Yunnan Daily News picture where big powers cooperate with, (02/02/2018). yet compete against and contain each other, 5. Li Keqiang (2014), Presentation at posing risks of unstable regional security. China - ASEAN (10+1) Leaders’ Summit In the climate of cooperation and in Naypyidaw (Myanmar) 13/11, http:// competition intertwined, with complicated www.xinhuanet.com/politics/2014- developments, unidentifi able and 11/14/c_1113240171.htm. 54 Social Sciences Information Review, Vol.13, No.2, June, 2019

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