Gateway to opportunities

In recent decades, China has sought to strengthen its relationships with the Association of Southeast Asian Nations region through investments, trade and free trade agreements. An emerging area of focus for China is the Brunei Darussalam, Indonesia, Malaysia and the Philippines — East ASEAN Growth Area (BIMP-EAGA), established in 1994 to promote socioeconomic development in the less developed eastern corridors of these nations.

The BIMP-EAGA encompasses the entirety of Brunei Darussalam, as well as the Indonesian provinces of Kalimantan, Sulawesi, Maluku and Papua; Malaysia's states of Sabah and Sarawak, along with the federal territory of Labuan; and the Philippine islands of Mindanao and Palawan. The subregion emphasizes five strategic pillars: connectivity, food production, tourism, environmental sustainability, and sociocultural and educational initiatives.

For China, the BIMP-EAGA presents a valuable opportunity for strategic partnerships that align with its regional development objectives, particularly through the Belt and Road Initiative. The subregion has started to gain economic traction, capitalizing on its abundant natural resources and rich biodiversity to promote renewable energy and drive overall growth — goals that resonate with China's focus on infrastructure and connectivity.

China's commitment to revitalizing the BIMP-EAGA dates back to the ninth ASEAN Summit in 2003.In 2009, China formalized its role as a "strategic development partner" by signing a Framework of Cooperation with the BIMP-EAGA.Although concrete outcomes have been limited since then, China has shown its dedication through various initiatives, including trade exhibitions, economic seminars and technical visits.

China's interest in the BIMP-EAGA was further emphasized by the Chinese government in late 2020, highlighting the subregion as a focal point for China-ASEAN cooperation. This recognition is reinforced by the BIMP-EAGA's inclusion as a critical area in China-ASEAN relations, as outlined in the 2019 joint statement on Synergizing the Master Plan on ASEAN Connectivity 2025 and the BRI.

China perceives the BIMP-EAGA as a strategic partner in its broader regional development agenda, particularly in light of the geopolitical disruptions and challenges posed by the global pandemic that have disproportionately affected less-developed regions. In 2021, to further assert its global commitment, the Chinese leader proposed the Global Development Initiative at the UN General Assembly, prioritizing economic development for the underdeveloped Global South.

Over the past decade, China has become an increasingly important economic partner for Brunei, which serves as a central player in the BIMP-EAGA. His Majesty Sultan Haji Hassanal Bolkiah has welcomed China's involvement in the subregion, recognizing the potential of the BRI to enhance regional connectivity and improve the economic landscape through the BIMP-EAGA.

Brunei, as the sovereign government within the BIMP-EAGA, plays a vital role in driving the subregion's objectives forward. The country's Vision 2035 highlights its dedication to economic diversification and presents a unique opportunity to connect BIMP-EAGA with China via the Brunei-Guangxi Economic Corridor (BGEC). Initiated in 2014, the BGEC is a significant BRI project that focuses on logistics, aquaculture, and halal food production, showcasing how China and Brunei can collaborate to integrate the BIMP-EAGA into global supply chains.

A notable achievement of the BGEC is the establishment of the Muara Port Company, a joint venture between Brunei's Darussalam Assets and China's Beibu Gulf Holding Company. This company operates Muara Port, the largest harbor in Brunei, which handles 90 percent of the country's import and export trade, excluding oil and gas. With plans to enhance its capacity, Muara Port aims to become a key global hub, optimizing Brunei's logistics network and facilitating regional trade.

In July 2023, Brunei launched a new container shipping route that connects Muara Port with China's Beibu Gulf Port in Guangxi. This development represents a crucial step in enhancing trade, connectivity, and market opportunities between Brunei, China, Malaysia and the broader BIMP-EAGA region. This shipping route is expected to facilitate the New International Land-Sea Trade Corridor, creating a direct link between ASEAN and China's western provinces.

With the new Indonesian capital set to be built on Borneo Island, BIMP-EAGA is poised to play an increasingly significant role in the coming decades amid a rapidly evolving geopolitical landscape. China, endowed with vast financial, technical and human resources, is competing with Australia, Japan, and South Korea to enhance cooperation with the subregion, aiming to develop a more equitable economy that can elevate the quality of the global value chain.

China's active engagement in fostering cooperation with the BIMPEAGA is crucial for achieving the shared goals of economic growth, enhanced connectivity, and regional development. As China strengthens its involvement in the subregion, strategic initiatives and collaborative efforts, including those from Brunei, can serve as essential pathways toward a future characterized by shared prosperity and sustainable development.

Chang-Yau Hoon is a professor at the Institute of Asian Studies at Universiti Brunei Darussalam and honorary director of the Brunei Research Institute at Guangxi Minzu University. Kaili Zhao is a researcher at the Center for Southeast Asian Studies at South China Normal University. The authors contributed this article to China Watch, a think tank powered by China Daily. The views don't necessarily reflect those of China Daily.

Contact the editor at editor@chinawatch.cn.