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China’s BRI appears to be pivoting to smaller, ‘greener’ projects, with Southeast Asia the target destination for investment. As the Belt and Road Initiative (BRI) enters its second decade, Beijing seems focused on filling in the fine details of the project’s ambitious outline, first announced by President Xi Jinping in 2013. It appears that the next iteration of the BRI will shift away from grand mega-projects to prioritize ‘small and beautiful’ high-quality projects. The green economy seems to be a particular focus, with Foreign Minister Wang Yi noting during a press conference in early March that China will ‘redouble efforts to build a green Silk Road’. Indeed, 2023 marked the ‘greenest’ year for the BRI, with green-energy investments reaching US$9.5 billion. Investments in critical minerals and mining, green technology (such as electric vehicles and batteries) and green energy (production and transmission) are now key elements of China’s strategic engagement framework for pursuing small, beautiful and green projects. Southeast Asia has become the target destination for China’s green-field investments due to its vast renewable-energy and critical-mineral potential. China gave Southeast Asian countries approximately US$3bn for renewable-energy projects from 2019–23. Many of these projects are focused on the region’s hydropower resources concentrated in countries along the Mekong River, such as Laos and Vietnam. Southeast Asia’s hydropower potential could increase the greening of the energy mix for both China and the region, especially through cross-border power trade. #china #beltandroadinitiative #bri #greeneconomy #renewableenergy #criticalminerals #electricvehicles #greensilkroad #southeastasia #crossborderpowertrade #hydropower

China’s evolving Belt and Road Initiative in Southeast Asia

China’s evolving Belt and Road Initiative in Southeast Asia

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