China
Stumbling blocks to ASEAN-China smart city cooperation
Author: Melinda Martinus, ISEAS-Yusof Ishak Institute
China is moving full speed ahead in the race for global technology leadership having promoted artificial intelligence, expanded venture capital and funded start-ups worldwide.
ASEAN countries have seen a surge in Chinese capital flows through massive infrastructure projects that have significant smart city elements, including Forest City Johor Bahru, New Clark City, New Manila Bay City of Pearl and Thailand’s Eastern Economic Corridor. China has also shown a great interest in the region’s newly planned township projects, including the Indonesia’s new capital city in East Kalimantan and New Yangon City.
To promote its investments in the region, China has emphasised the opportunity to leverage solutions based on the Internet of Things (IoT) while advertising projects as ‘smart’, ‘green’, and ‘liveable’. This includes the use of sensors, networks and data to optimise public services and enhance liveability through automated energy management, integrated traffic control and faster internet connections in newly built towns. Chinese-owned technology platforms like digital wallet by Alipay, AI adoption and 5G networks by Huawei, and communication platforms by Tencent have also become essential solution providers to enhance public services.
The Chinese government frequently promotes smart city cooperation under its Digital Silk Road Initiative, a significant component of the Belt and Road Initiative (BRI). In ASEAN, cooperation is enhanced through the ASEAN–China Strategic Partnership Vision 2030 where China has pledged to support ASEAN’s technology transformation initiatives, including the ASEAN ICT Master Plan 2020 and the ASEAN Smart City Network.
Despite lofty ambitions and political buy-in from ASEAN leaders, China still faces technical challenges. Huawei’s failure to win the bid to provide Singapore’s main 5G network demonstrates how aware policymakers are of security and data protection issues. Huawei has frequently faced accusations of enabling espionage by the Chinese government. Huawei’s loss to Nokia and Ericsson also shows how competitive and rigorous the process of bidding for critical infrastructure is in Singapore.
The Jakarta–Bandung High-Speed Rail was delayed by land acquisition barriers that have revealed challenges China must overcome to execute large-scale projects in a country that embraces the rights of individual ownership and fully adheres to the land market economy. This experience has also shown the limit of China’s development model even with its extensive experience building large infrastructure projects domestically.
China is yet to create a ‘green’ and ‘sustainable’ image from its BRI projects. Chinese-backed investment projects like Forest City Johor Bahru have received criticism for their detrimental impacts on the surrounding ecosystem by destroying marine biodiversity and polluting waterways. Similarly, the ongoing New Manila Bay City of Pearl project has been criticised for the potentially harmful impacts caused by the loss of both mangrove biodiversity and livelihoods of fisher communities.
There is also concern over trust. Malaysian civil societies frequently raise the issue of equity, questioning how Forest City Johor Bahru will bring employment and affordable housing to local people. The appointment of China Harbour Engineering to conduct reclamation work in Manila Bay has also sparked concerns as the company was involved in a bribery scandal in Bangladesh.
China may also face fierce competition from other players. Although Japan has not yet signed significant deals on large-scale smart city projects, it has recently announced a US$2.4 billion fund to pave the way for companies seeking smart city projects, particularly projects that help ASEAN cities to decarbonise. South Korea has also recently increased funds for ASEAN infrastructure projects through the Korea–ASEAN Global Infra Fund, and the Construction, Plant and Smart City Policy Fund.
Non-Chinese private investors have also started smart city projects in the region. Japanese company Mitsubishi recently announced a joint venture with Singapore’s state-backed investor Temasek Holdings to build a 100-hectare smart city in Jakarta. Amata Corporation, a Thai industrial estate developer, has also started to expand capital in the Mekong countries. The company also sealed deals to build industrial complexes in Myanmar (which has been halted due to the coup) and Laos in addition to its extensive portfolio in Vietnam.
China’s…
Business
China Telecom Gulf Officially Launches Operations in Saudi Arabia for Business Expansion
China Telecom Gulf was launched in Riyadh, enhancing digital cooperation between China and Saudi Arabia under the “Belt and Road Initiative,” with a focus on technological innovation and infrastructure development.
China Telecom Gulf Launches in Riyadh
On November 21, 2024, China Telecom Gulf was officially inaugurated in Riyadh, symbolizing a significant advancement in China Telecom’s internationalization efforts and commitment to the "Belt and Road Initiative." The event was attended by over 100 dignitaries, including Mr. Liu Guiqing, Executive Director of China Telecom Corporation, and Mr. Fawaz from the Industrial and Commercial Bank of China Riyadh Branch, marking a milestone in fostering a shared future between China and Arab nations.
Commitment to Digital Transformation
In his speech, Mr. Liu highlighted China Telecom’s dedication to collaborating with Saudi enterprises and local governments to enhance digital infrastructure. By leveraging its expertise in technologies like 5G and artificial intelligence, the company aims to provide high-quality communication services, thereby driving socio-economic growth in the region.
Strategic Partnerships for Growth
During the launch, China Telecom Gulf signed strategic agreements with several prominent companies, including Saudi Telecom Company and Huawei. These collaborations are geared towards optimizing digital experiences for Saudi customers and contributing to the broader Sino-Saudi cooperation in technology and economic development, solidifying China Telecom’s role in the Middle Eastern telecom landscape.
Source : China Telecom Gulf Officially Launches in Saudi Arabia for Business
China
India Initiates a Shift in Security Focus Regarding China Amid Economic Ambitions
Since 2014, India’s Modi government aimed to boost manufacturing through the Make-in-India campaign. However, tensions with China led to increased scrutiny of Chinese investments post-COVID-19, limiting their influence.
Modi’s Manufacturing Push
Since Narendra Modi took office in 2014, his administration has focused on boosting the manufacturing sector’s contribution to India’s GDP. The launch of the Make-in-India campaign aimed to enhance manufacturing capabilities and attract foreign direct investment (FDI), even in sensitive sectors such as defense and railways, thereby fostering economic growth.
Shift in Economic Relations
During this period, Chinese companies like Oppo and ZTE sought to capitalize on India’s manufacturing potential. However, the 2020 COVID-19 pandemic highlighted the need for safeguard measures against potential foreign takeovers. In response, India revised its FDI policy to increase scrutiny on investments from neighboring countries, particularly targeting Chinese investments, which now require governmental approval.
Geopolitical Tensions and FDI Impact
Tensions escalated after the June 2020 Galwan clash, severely straining Indo-China relations. This ongoing border standoff has posed challenges to the evolving dynamics between the two nations. As a result of these geopolitical tensions and pandemic-era policies, Chinese capital inflow to India constituted merely 0.43% of the total FDI from April 2000 to December 2021, highlighting a significant downturn in bilateral economic ties.
Source : India begins a rebalance of security concerns over China and economic aspirations
Business
BRICS: China Classifies Crypto as Property and Prohibits Business Ownership
China’s Shanghai court ruled cryptocurrencies are property, boosting optimism in the crypto industry while maintaining a ban on business transactions. This may signal a shift in future regulations.
China’s Ruling on Cryptocurrency
In a pivotal decision for the nation and its BRICS alliance, China has officially classified cryptocurrency as property while maintaining prohibitions against business transactions involving digital assets. A notable ruling from the Shanghai Songjiant People’s Court affirmed cryptocurrencies as property, sparking optimism within the crypto industry regarding future regulations.
Implications for the Crypto Industry
As cryptocurrencies gain significance globally, the Chinese ruling is viewed as a potential-positive shift amidst ongoing restrictions. While individuals can hold virtual currency, businesses remain barred from engaging in investment transactions or issuing tokens independently. This decision has generated anticipation for more accommodating regulations in the future.
Future Prospects for Cryptocurrency in China
Experts like Max Keiser believe this ruling indicates China’s growing acknowledgment of Bitcoin’s influence. As BRICS nations explore increased cryptocurrency utilization in trade, this legal shift could enhance market demand and lead to greater acceptance of cryptocurrencies as a legitimate asset class, setting the stage for potential developments in 2025.
Source : BRICS: China Rules Crypto as Property, Bars Business Holdings
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