The Political Economy of a Rising China in Southeast Asia

Abstract

Disputing research that depicts weak states getting overwhelmed by China’s financial might, this article argues that the political elites in a relatively weak and small state such as Malaysia are adept in engaging with a rising China to advance key projects, furthering their own agenda. In the case of Malaysia, the eventual outcome of this interaction is dependent on three key conditions: fulfilment of Malaysia’s longstanding pro-ethnic Malay policy, a mutual vision between the state and federal authorities, and advancement of geopolitical interests for both Malaysia and China. The article puts forward a typology illustrating various possible outcomes to examine the interconnections between key players at a time of Chinese ascendancy.