Mixed Motivations and Mixed Blessings : Chinese Investments in Southeast Asian Energy and Mineral Resources

Multi-national energy and mining companies used to play a significant role in exploring and exploiting Southeast Asia's energy and mineral resources. Their involvement has steadily declined as larger deposits have become available for exploitation elsewhere in the world, and under more attractive fiscal and regulatory conditions. Their place is progressively being taken over by state-owned and state-backed enterprises from different Asian countries, especially China.• Energy and mineral companies play an important part in China's economic engagement with Southeast Asia. Although Southeast Asia is not a preferred region for Chinese overseas resource investments, it offers distinct locational advantages to China's energy and mineral companies and to the government.• Most Chinese companies undertaking the projects are wholly or partly owned by the government at either central or local levels, though private companies do engage in smaller projects. Corporate objectives include securing energy or resource supply chains, increasing or diversifying their asset base, and enhancing their profits or market share.The motivations of the government range from straightforward support of the companies for the purpose of industrial strategy and security of resource supply, to development assistance, diplomacy and regional strategic positioning