Foreign Investment, State Capitalism, and National Development in Borneo: Rethinking Brunei–China Economic Relations
Faced with dwindling oil and gas reserves, Brunei has been hard-pressed to diversify its reliance on hydrocarbon. China has emerged as an attractive prospect to the Brunei government, especially since the launch of the Belt and Road Initiative. This article analyses a few major Chinese projects in B...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
SAGE Publishing
2023-08-01
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| Series: | Journal of Current Southeast Asian Affairs |
| Online Access: | https://doi.org/10.1177/18681034231186441 |
| _version_ | 1797771605920710656 |
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| author | Guanie Lim Chang-Yau Hoon Kaili Zhao |
| author_facet | Guanie Lim Chang-Yau Hoon Kaili Zhao |
| author_sort | Guanie Lim |
| collection | DOAJ |
| description | Faced with dwindling oil and gas reserves, Brunei has been hard-pressed to diversify its reliance on hydrocarbon. China has emerged as an attractive prospect to the Brunei government, especially since the launch of the Belt and Road Initiative. This article analyses a few major Chinese projects in Brunei and postulates three interrelated arguments. Firstly, Chinese investors have targeted Brunei's natural resources and fiscal incentives. These firms have minimal interest in the Sultanate's small domestic market as they eye the export sector. Secondly, these projects have been orchestrated by China's provincially-owned state-owned enterprises (SOE) and private firms, instead of centrally- controlled SOEs. State support has generally been channelled to these projects in an at-arm's length manner. Thirdly, while Brunei is relatively skilled in attracting Chinese investors to further its own political economic goals, at least in the short-run, it is uncertain whether such capital exports have helped in ameliorating the structural limits of the country’s economy. |
| first_indexed | 2024-03-12T21:40:01Z |
| format | Article |
| id | doaj.art-03116dde52f145c5b7363e7a0fd91335 |
| institution | Directory Open Access Journal |
| issn | 1868-1034 1868-4882 |
| language | English |
| last_indexed | 2024-03-12T21:40:01Z |
| publishDate | 2023-08-01 |
| publisher | SAGE Publishing |
| record_format | Article |
| series | Journal of Current Southeast Asian Affairs |
| spelling | doaj.art-03116dde52f145c5b7363e7a0fd913352023-07-27T01:04:11ZengSAGE PublishingJournal of Current Southeast Asian Affairs1868-10341868-48822023-08-014210.1177/18681034231186441Foreign Investment, State Capitalism, and National Development in Borneo: Rethinking Brunei–China Economic RelationsGuanie Lim0Chang-Yau Hoon1Kaili Zhao2 , Minato-ku, Tokyo, Japan , Jalan Tungku Link, Gadong, Brunei Darussalam , Jalan Tungku Link, Gadong, Brunei DarussalamFaced with dwindling oil and gas reserves, Brunei has been hard-pressed to diversify its reliance on hydrocarbon. China has emerged as an attractive prospect to the Brunei government, especially since the launch of the Belt and Road Initiative. This article analyses a few major Chinese projects in Brunei and postulates three interrelated arguments. Firstly, Chinese investors have targeted Brunei's natural resources and fiscal incentives. These firms have minimal interest in the Sultanate's small domestic market as they eye the export sector. Secondly, these projects have been orchestrated by China's provincially-owned state-owned enterprises (SOE) and private firms, instead of centrally- controlled SOEs. State support has generally been channelled to these projects in an at-arm's length manner. Thirdly, while Brunei is relatively skilled in attracting Chinese investors to further its own political economic goals, at least in the short-run, it is uncertain whether such capital exports have helped in ameliorating the structural limits of the country’s economy.https://doi.org/10.1177/18681034231186441 |
| spellingShingle | Guanie Lim Chang-Yau Hoon Kaili Zhao Foreign Investment, State Capitalism, and National Development in Borneo: Rethinking Brunei–China Economic Relations Journal of Current Southeast Asian Affairs |
| title | Foreign Investment, State Capitalism, and National Development in Borneo: Rethinking Brunei–China Economic Relations |
| title_full | Foreign Investment, State Capitalism, and National Development in Borneo: Rethinking Brunei–China Economic Relations |
| title_fullStr | Foreign Investment, State Capitalism, and National Development in Borneo: Rethinking Brunei–China Economic Relations |
| title_full_unstemmed | Foreign Investment, State Capitalism, and National Development in Borneo: Rethinking Brunei–China Economic Relations |
| title_short | Foreign Investment, State Capitalism, and National Development in Borneo: Rethinking Brunei–China Economic Relations |
| title_sort | foreign investment state capitalism and national development in borneo rethinking brunei china economic relations |
| url | https://doi.org/10.1177/18681034231186441 |
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