By Jarvis Lee | 2025-06-27

China's Belt and Road Initiative (BRI) projects in Southeast Asia are raising concerns that they may be contributing to democratic backsliding in the region.

In January 2025, Thailand announced that 36% of the first phase of the China–Thailand high-speed railway had been completed, with full operation expected by 2030.

The project aims to help Thailand become a regional logistics hub. Government spokesperson Jirayu Houngsub described it as "an opportunity for Thailand to connect to the global economy."

However, this flagship Belt and Road Initiative (BRI) project -- like many other Chinese-backed initiatives -- has faced controversy since its inception.

Delays caused by financing issues, design disagreements and the COVID-19 pandemic have pushed the timeline back nearly a decade, fueling public frustration.

Critics have questioned whether the ruling Pheu Thai Party has used the project to channel economic benefits to political allies, thereby strengthening its ties with local power brokers and business elites.

Prem Singh Gill, a member of the opposition Thai People's Party, criticized the project in an interview with Focus.

"Construction contracts, land development rights near future stations and consulting positions have been strategically allocated to reinforce patronage networks," he said.

Projects involving such large sums are often decided "through closed-door negotiations between political leaders and business figures, bypassing parliament and public consultation," he added.

He described the high-speed rail project as an example of how "the promise of Chinese investment has created a parallel decision-making structure that operates alongside -- and sometimes supersedes -- formal democratic institutions."

Spreading corruption

Beyond Thailand, Cambodia, which has closely aligned itself with the BRI, is seen as the Southeast Asian country most deeply influenced by China.

Cambodia ranked second globally, behind only Pakistan, in terms of Chinese influence, particularly in domestic politics, technology and law enforcement, according to the 2024 China Index released by Taiwan-based nonprofit Doublethink Lab.

Chinese capital has moved aggressively into Phnom Penh, dominating the city's real estate, tourism, industrial parks and energy sectors, Chen Chien-fu, associate professor at Tamkang University's Department of Diplomacy and International Relations, wrote in 2023 in the Taiwan International Studies Quarterly.

The money has exacerbated "corruption among local government officials as Chinese businessmen bribe local officials through relationships or money," Chen wrote.

In Sihanoukville, the influx of Chinese investment transformed the once-quiet fishing village into a hub for online fraud and money laundering, leading to rising crime and deteriorating public security, he pointed out.

After Chinese capital withdrew, the city was left with abandoned construction sites, surging prices and growing social unrest.

Burma presents another alarming example.

Despite an ongoing civil war, China has continued to push forward the China–Myanmar Economic Corridor (CMEC) project, which runs from the coastal port of Kyaukphyu to China's border, stretches over 1,000km and carries a price tag of more than $15 billion.

However, the civil war has disrupted construction. Currently, progress has been limited to Kyaukphyu and a few smaller connectivity projects.

The CMEC is linked to broader Chinese commercial activity in Burma, including resource extraction operations that have damaged the environment and contributed to the country's war economy.

A May 2024 article in The Pacific Review reported that during the post-coup political turmoil in Burma, Chinese companies carried out unauthorized and, in some cases criminal, mining operations without proper oversight, sparking public anger.

Restricting civil liberties

A 2021 report by the Brookings Institution in the United States warned that as China expands infrastructure development in Southeast Asia, "corruption and elite capture has risen."

The report noted that Beijing's "export of digital surveillance tools and policy playbooks that are accommodative of their adoption," have made it "easier for illiberal leaders, particularly in Southeast Asia, to restrict civil liberties."

As China continues to deepen its involvement in Southeast Asia's infrastructure and economy, striking a balance between attracting foreign capital and protecting democratic governance has become a growing challenge for both regional leaders and civil society organizations.

[Part IV of IV in a series on China's Belt and Road Initiative in Southeast Asia]