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

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.