Contemporary Chinese Political Economy and Strategic Relations: An International Journal (Dec 2021)
BRICS and Industrial Cooperation: China’s Role and Lesson from ASEAN
Abstract
Industrial cooperation among BRICS countries (Brazil, Russia, India, China, and South Africa) has been mostly lacking to date, exacerbated by the absence of a memorandum of understanding or agreement on the subject. However, there have been discussions about forming an industrial intra-venture. According to the records of ministerial meetings, only China expressed an interest in industrial cooperation because it possesses the capability, including industrial technology, productive capital, and human resources, to establish a joint venture for manufacturing activities. Russia and India also possess these skills, but they lack the ability to lead or force member states to form an industrial cooperation. In short, the BRICS member states lack considerable industrial collaboration, either bilaterally or through multilateral accords. In contrast, ASEAN maintains an active industrial cooperation among its member states, despite the fact that some of their industrial ventures have failed due to a lack of technical know-how and technological development capacities, as well as productive and human capital. Nonetheless, investment amongst ASEAN countries has expanded due to the development of ASEAN Industrial Cooperation (AICO). One of the primary components of industrial cooperation is cross-border, or intra-regional, investment. This article examines inward and outward investments among the BRICS member states, the feasibility of industrial collaboration among them, and China’s role in fostering this cooperation. ASEAN member states’ industrial cooperation experiences will be explored to determine what lessons BRICS can learn from ASEAN.
