Making Inroads: Chinese Infrastructure Investment in ASEAN and Beyond

Little more than a decade ago, China was a relatively minor actor in global investment and finance. By 2014 it had become the second largest global investor, second only to the United States. Outbound investment has been made possible due to strong backing from the Chinese state and financing from its policy and commercial banks. In recent years, China has promoted the establishment of new financial institutions and initiatives, including the multilateral Asian Infrastructure Investment Bank (AIIB). China has also established investment funds such as the Silk Road Fund to provide further capital for outbound investment. These new institutions and initiatives focus heavily on infrastructure development, and China is set to expand its role in global infrastructure financing significantly in the coming years. This publication takes stock of these institutions and initiatives, how they will potentially impact on local communities and the environment, and what environmental and social standards and governance systems they have adopted. It also discusses strategies that watchdog groups can deploy to respond to these developments and influence the policies, projects and operations of Chinese-led finance institutions. IDI has also published a set of fact sheets based on the report, which are available in six languages: English, Chinese, Khmer, Vietnamese, Burmese and Thai. They can be downloaded from the IDI website.

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