Proceedings of the 2nd International Conference on Strategic and Global Studies, ICSGS 2018, October 24-26, 2018, Central Jakarta, Indonesia

Research Article

China Controls Business Actors to Implement Belt and Road Initiative as Connectivity Project

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  • @INPROCEEDINGS{10.4108/eai.24-10-2018.2289681,
        author={Aspin Nur Arifin Rivai and Asra  Virgianita},
        title={China Controls Business Actors to Implement Belt and Road Initiative as Connectivity Project},
        proceedings={Proceedings of the 2nd International Conference on Strategic and Global Studies, ICSGS 2018, October 24-26, 2018, Central Jakarta, Indonesia},
        publisher={EAI},
        proceedings_a={ICSGS},
        year={2019},
        month={11},
        keywords={bri state-business agenda of connectivity internationalization and railway infrastructure and transportation industry},
        doi={10.4108/eai.24-10-2018.2289681}
    }
    
  • Aspin Nur Arifin Rivai
    Asra Virgianita
    Year: 2019
    China Controls Business Actors to Implement Belt and Road Initiative as Connectivity Project
    ICSGS
    EAI
    DOI: 10.4108/eai.24-10-2018.2289681
Aspin Nur Arifin Rivai1,*, Asra Virgianita2
  • 1: Postgraduate Progran Department of International Relations, Faculty of Social and Political Sciences, Univerisitas Indonesia, Indonesia
  • 2: School of Strategic & Global Studies and Faculty of Social & Political Sciences, Universitas Indonesia, Indonesia
*Contact email: askaspin@gmail.com

Abstract

This paper examines the relationship between state and business in China's foreign economic policy called BRI. Departing from the theory of state penetration on business actors, this study confirms that the connectivity agenda through BRI contains China's economic and political motives in Southeast Asia. The strategic objective is to deepen internationalization and cooperation relationships. This research shows that business actors play an important role in promoting China's strategic interests through BRI. The industry of railway infrastructure and transportation construction is part of China’s control. The penetration process takes place in four determinant factors. First, BRI's policy is used as a national development program in order to unify the relationship between central and subnational government. Second, the objectives between government and business actors are compatible. Finally, the relationship between the government, the two industrial sectors and the involvement of business actors becomes directive and hierarchical – because the government controls the ownership system, the company management system, and the company's leadership structure. The results of this study indicate that the state has successfully controlled business actors.