Navigating Brunei-China Economic Connectivity under the Belt and Road Initiative: Achievements and Challenges

Abstract

As a member state of ASEAN, Brunei Darussalam has historically maintained a close relationship with China. In recent years, with the implementation of the Belt and Road Initiative (BRI), the two countries have deepened their bilateral diplomatic, economic and trade co-operation through the establishment of the Brunei-Guangxi Economic Corridor and other multilateral platforms for China-ASEAN co-operation, especially the China-ASEAN Expo. These developments, and the consequential rise in Chinese foreign direct investment (FDI), have led to the establishment of mainland Chinese enterprises and an influx of Chinese transient migrants in Brunei. Using materials from a thorough review of literature and ethnographic fieldwork conducted at two Chinese companies, this article examines the economic connectivity between Brunei and China under the BRI. It provides an analysis on the achievements made by the two countries on multi-type FDI co-operation and rapidly growing bilateral trade. The article also discusses the ongoing challenges of the bilateral co-operation, including a deficient publicity of the BRI, lackadaisical progress of some projects, and labour controversies surrounding the Chinese FDIs in Brunei.