China turns crisis into opportunity with its maritime silk road

September and October saw a flurry of diplomatic activity as China sought to strengthen its ties with its neighbours. First there was the Sino-Asean summit in Nanning, where Premier Li Keqiang outlined his vision of a “diamond decade” that would take the partnership to new heights. 

This was followed by official visits by President Xi Jinping to Malaysia and Indonesia, the East Asia Summit in Brunei and the Apec leaders meeting in Bali, where President Xi revealed a seven-point cooperation plan and discussed the concept of the 21st century Maritime Silk Road. Finally Premier Li made official visits to Brunei, Thailand and Vietnam, where he unveiled a raft of business and cooperation initiatives.

The timing of these major Asian events was fortunate for China, as many editorial writers have contrasted the absence of President Obama at Apec, due to the budget stalemate, with the strong and active role that China is playing in the region. On a practical level, China gained further support and commitment for its major free trade initiative, the RCEP (Regional Comprehensive Economic Partnership), while America’s TPP (Trans Pacific Partnership) appeared to be stalled.

There were also many country-level initiatives by China. While in Thailand, Premier Li signed six agreements on energy development, infrastructure investment and exchange of farm products, scientific cooperation, investment promotion, maritime cooperation and a joint action plan for culture. 

Premier Li stressed the close familial ties between our two countries and gave the first ever parliamentary address by a 

foreign leader in Thailand, for which he received a standing ovation.

China and Thailand have always been close, but not so China and Vietnam. From a strategic viewpoint, Premier Li’s visit to Vietnam, right after Thailand, was even more important. Their recent tensions over maritime boundaries seemed to have eased, thanks in part to China’s efforts to be conciliatory at the regional forums. 

The visit prompted many expressions of friendship and cooperation and agreements were inked, including the establishment of a cross-border economic zone, the joint building of a power plant and the opening of trade-promotion offices. 

Premier Li said China is willing to work with Vietnam on joint development of the sea and will create favourable conditions for an appropriate solution to the South China Sea issue.

It appears the economic and political difficulties that America and Europe are facing have created a golden opportunity for China to strengthen both its economic and soft power in this important part of the world.