Infrastructure Diplomacy: Assessing China-Japan Competition in Third-Country Infrastructure Investments

This research is concerned with the dynamics of infrastructure investments between China’s Belt and Road Initiative (BRI) and Japan’s Partnership for Quality Infrastructure (PQI). It explores the past and present political and economic relationship between the two countries, how both initiatives came into being, and contextualizes them within the contentious political relations between the two countries. Where most literature on the topic adopts a zero-sum confrontational approach, this research uses a comparative case study analysis and explores the overlapping strategies, seeking whether competition or cooperation is present in Japanese and Chinese infrastructure investments. As the BRI has received more attention in recent years, the primary focus of this research is thus on Japan’s PQI. Furthermore, it answers the question if cooperation is viable, depending on either party’s interests. The cases discussed are primary regions in the formulations of both the BRI and PQI and...Show moreThis research is concerned with the dynamics of infrastructure investments between China’s Belt and Road Initiative (BRI) and Japan’s Partnership for Quality Infrastructure (PQI). It explores the past and present political and economic relationship between the two countries, how both initiatives came into being, and contextualizes them within the contentious political relations between the two countries. Where most literature on the topic adopts a zero-sum confrontational approach, this research uses a comparative case study analysis and explores the overlapping strategies, seeking whether competition or cooperation is present in Japanese and Chinese infrastructure investments. As the BRI has received more attention in recent years, the primary focus of this research is thus on Japan’s PQI. Furthermore, it answers the question if cooperation is viable, depending on either party’s interests. The cases discussed are primary regions in the formulations of both the BRI and PQI and include Pakistan, the Greater Mekong subregion, and Kenya. Based on the findings of this research it concludes that cooperative outcomes are possible through the initiatives’ complementarity and by making use of both country’s comparative advantages in the recipient countries. Comparative advantages mainly present themselves by China’s large-scale, risky, and high investments vis-à-vis Japan’s technical knowledge and cost-benefit assessments. Competition is in turn rarely evident, but the potential for aligning the two initiatives remains untapped.Show less

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Infrastructure Diplomacy: Assessing China-Japan Competition in Third-Country Infrastructure Investments