USA TODAY International Edition
Chinese investment in Malaysia hints at its trade ambitions
Development expands global land, sea routes
MELAKA, MALAYSIA Colorful shops and historic buildings draw millions of tourists each year to this ancient port city, once a principal stop on the ancient Spice Road.
Not far from the heart of the old town, a new road is taking shape, part of a $ 1 trillion Chinese plan to build a network of land and sea routes from Asia to the Middle East, Africa and Europe.
China’s ambitious Belt and Road Initiative aims to expand China’s political, economic and military clout as the U. S. withdraws economically from the region, leaving a vacuum China has been more than eager to fill.
Earlier this year, President Trump pulled the United States out of the Trans- Pacific Partnership — a massive trade accord negotiated by 12 Pacific Rim nations that had excluded China. He argued the deal was not in the best interests of the U. S.
“We’ve done away with what was the vision we had, and we haven’t put anything new forward,” said Jonathan Hillman of the Center for Strategic and International Studies in Washington, D. C. “There’s something powerful about China putting forward this hugely ambitious economic initiative.”
Construction began in October on the Melaka Gateway, a $ 10 billion harbor project built on artificial islands that will include a new deep- sea port. Chinapower, a Chinese state- owned energy giant, is the project’s main investor, in partnership with local KAJ Development.
The project includes stores, a theme park, a marina, a freetrade zone and an industrial park. But some question whether China has longer- term naval ambitions for the port located on the Malacca Strait, where about 80% of Chinese oil imports pass.
“The strategic geography I think is an important part of this,” Hillman said. “China clearly has an interest in protecting its trade routes.”
Neighboring Singapore has long had a close defense relationship with the U. S., which has deployed naval combat ships there since 2013. Analysts see China’s closer economic ties with Malaysia as a chance to strengthen its own maritime footprint in a crucial region.
“There’s the argument that China is not getting favorable treatment from Singapore, so why not try Malaysia?” said Johan Saravanamuttu, a Malaysia expert at the S. Rajaratnam School of International Studies at Nanyang Technological University in Singapore.
“China clearly has an interest in protecting its trade routes.”
Jonathan Hillman, of the Center for Strategic and International Studies, based in Washington, D. C.