The Strategic Role of Chinese Investment in Post-Pandemic Era in Southeast Asia under the Belt and Road Initiative

China’s Belt & Road Initiative (BRI) has emerged as an alternative economic collaboration to fill the infrastructure investment gap in Southeast Asia. It considers that the strategic dimension of BRI investments, as part of China’s broader strategy, promotes development both within its borders and in partnering countries. The economic structures and policies of Southeast Asian countries have changed through BRI initiatives since 2013. This paper examines the role of Chinese investment and the BRI in the post-pandemic economic recovery of Southeast Asia. Through BRI, the ASEAN market has become increasingly significant in recovery after the economic disruptions caused by the COVID-19 pandemic. This paper explores how this BRI initiative fosters economic cooperation and the importance of aggregate demand in state interdependence from a Keynesian perspective. Among the various investments in Southeast Asia, the construction of infrastructure stimulates economic growth and becomes the key component of the BRI’s influence in the region. The paper explores how the BRI advances China’s economic agenda and supports Southeast Asia’s post-pandemic recovery and development. It discusses key projects like Indonesia’s Jakarta-Bandung High-Speed Railway, Malaysia’s East Coast Rail Link (ECRL), the China-Thailand High-Speed Railway, the China-Laos Railway, Cambodia’s Sihanoukville SEZ, Vietnam’s Cat Linh-Ha Dong Metro Line, and the Chico River Pump Irrigation Project in the Philippines and the China-Myanmar Economic Corridor (CMEC). In this paper, the author argues that the Belt and Road Initiative could have the potential to rejuvenate Southeast Asia by tackling major infrastructure deficits and boosting economic growth, and China could seize the opportunities in the shifting post-pandemic landscape along with an understanding of the broader geopolitical landscape. However, the paper also tries to point out that the long-term success and mutual benefits of these investments hinge on the careful management of environmental, social, and governance (ESG) risks and individual nation interests. As China amplifies its engagement with the ASEAN market, the success of the BRI will depend on collaborative efforts to effectively address the challenges.