Securing the Belt and Road Initiative: Risk Assessment, Private Security and Special Insurances Along the New Wave of Chinese Outbound Investments

311 Pages·2018·3.45 MB·English

by  Alessandro Arduino

S E C U R I N G
T H E B E LT A N D R O A D
I N I T I A T I V E
Risk Assessment, Private Security and Special Insurances
Along the New Wave of Chinese Outbound Investments
EDITED BY ALESSANDRO ARDUINO AND XUE GONG
Securing the Belt and Road Initiative
Alessandro Arduino • Xue Gong
Editors
Securing the Belt and
Road Initiative
Risk Assessment, Private Security and Special
Insurances Along the New Wave of Chinese
Outbound Investments
Editors
Alessandro Arduino Xue Gong
Shanghai Academy of Social Sciences S. Rajaratnam School of International
Security & Crisis Management Studies (RSIS)
Program Nanyang Technological University
Shanghai, China Singapore, Singapore
ISBN 978-981-10-7115-7 ISBN 978-981-10-7116-4 (eBook)
https://doi.org/10.1007/978-981-10-7116-4
Library of Congress Control Number: 2017961565
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A
cknowledgments
The core chapters of this volume are based on the draft papers presented
during the ‘Securing the Belt and Road Initiative: Risk Assessment, Private
Security and Special Insurances along the New Wave of Chinese FDI’ (28
October 2016) workshop co-organized in Singapore by the China
Programme of the S. Rajaratnam School of International Studies (RSIS) at
Nanyang Technological University (NTU) and the Shanghai Academy of
Social Sciences–University of Turin (SASS–UNITO) Joint Security and
Crisis Management Program.
The editors desire to acknowledge the intellectual contribution of all the
workshop discussants and the support given during the editing of the vol-
ume by all the chapters’ authors and the understanding editor Mr. Jacob
Dreyer. The workshop and the volume are fortunate to benefit from the
insights and extensive experience of Dr. Cindy Smith, director of the United
Nations Interregional Crime and Justice Research Institute (UNICRI).
Deepest thanks go to all the supportive staff from RSIS, the Communi-
cations Department at SASS and the Chinese Studies Department and
International Relations Office at UNITO.
Last but not least, the editors would like to express their gratitude to
Professor Gianmaria Ajani, Rector of UNITO; Professor Li Yihai, Secretary
General of the Think Tank Foundation at SASS; and Professor Li Mingjiang,
Director of the China Programme at the Institute of Defence and Strategic
Studies (IDSS) at RSIS for their continuous support and strategic vision.
v
c
ontents
Part I Introduction 1
1 Introduction 3
Alessandro Arduino and Xue Gong
Part II The Belt and Road Security Blueprint 15
2 The Uneven Regulation of Private Security in ASEAN
Member States 17
Sebastian Booth and Cindy J. Smith
3 China’s Belt and Road Security: The Increasing Role
of Insurance and Private Security Companies 39
Alessandro Arduino
Part III Maritime Political and Security Risks 61
4 Singapore’s Role in the Belt and Road Initiative 63
Sarah Y. Tong and Tuan Yuen Kong
vii
viii CONTENTS
5 Resolving the Malacca Dilemma: Malaysia’s Role
in the Belt and Road Initiative 81
Guanie Lim
6 The PRC’s Maritime Silk Road Initiative, Southeast Asia,
and the United States 101
Kerry Brown
Part IV C orporate Social Responsibilities and Insurance
Performance of Chinese Investments 119
7 China Power Investment Corporation in Myanmar 121
Xue Gong
8 CSR as a Tool to Mitigate Risk for the B&R Initiative:
The Case of Thailand 147
Zhimin Tang
9 China, Securing “Belt and Road Initiative”: Risk
Management 163
HaoMing Zhou
Part V Risk Forecasting and Crisis Mitigation
along the Eurasian Landmass and Middle East 179
10 One Belt, One Road in Central Asia:
Progress, Challenges, and Implications 181
Farkhod Tolipov
11 Securing CPEC: Challenges, Responses and Outcomes 197
Khuram Iqbal
12 Uyghur Militant Activity in Southeast
Asia and Its Security Implications 215
Pinjie Sun
CONTENT S ix
13 Chinese Investments in the Arab Maelstrom 235
James M. Dorsey
Part VI The European Union: The Belt and Road Terminus 255
14 Beyond Ports and Transport Infrastructure:
The Geo-Economic Impact of the BRI
on the European Union 257
Alessia A. Amighini
15 China’s Belt and Road Initiative and the 16+1
Platform: The Case of the Czech Republic 275
Alica Kizeková
Index 299
l c
ist of ontributors
Alessia A. Amighini is Co-Head of the Asia Research Programme and
Senior Associate Research Fellow at Istituto Per Gli Studi Di Politica
Internazionale (ISPI) in Italy. She is also Associate Professor of Economic
Policy at the University of Piemonte Orientale and Catholic University of
Milan, and a Senior Fellow at SDA Bocconi China Lab. Professor Amighini
was previously Associate Economist at the United Nations Conference on
Trade and Development (UNCTAD). She holds a PhD in Development
Economics at the University of Florence, a Master in Economics and a BA
in Economics from Bocconi University. She is editor and author, with Alex
Berkofsky, of Xi’s Policy Gambles: The Bumpy Road Ahead (2015), China
Dream: Still Coming True? (2016) and Belt and Road: A Game Changer?
(2017), all for ISPI. She is also author of more than 60 scientific articles in
top international peer-reviewed journals including China Economic Review,
World Development, The World Economy, International Economics, China
and the World Economy, European Journal of Comparative Economics,
Regional Studies, Seoul Journal of Economics, Frontiers of Economics in
China and chapters in books by Edward Elgar, Harvard University Press,
Oxford University Press, Palgrave and Routledge.
Professor Amighini is the scientific coordinator of research projects on
EU-China economic and trade relations for the European Parliament,
Italian Ministry of Foreign Affairs and International Cooperation and
Italy-China Business Forum. She is a senior expert for the Council on
Global Problem-Solving (Kiel), the International Centre for Trade and
Sustainable Development (Geneva) and the Italy–China Foundation.
xi
xii LIST OF CONTRIBUTORS
Alessandro  Arduino is the co-director of the Security & Crisis
Management program at the Shanghai Academy of Social Sciences (SASS-
UNITO) and external affiliate at the Lau China Institute, King’s College
London. Dr. Arduino’s two decades of experience in China encompass
security analysis and crisis management. His main research interests
include China’s political economy, Sino-Central Asia relations, Sovereign
Wealth Funds, Private Military Security Corporations and China’s energy
security and foreign policy. He is the author of several books and has pub-
lished papers and commentaries in various journals in Italian, English and
Chinese. His most recent book is China’s Private Army. Protecting the
New Silk Road (2017). He was appointed Knight of the Order of the
Italian Star by the president of the Italian Republic.
Sebastian Booth is a PhD Candidate at the University of York. His
current research focuses on the post-crisis regulation of the UK private
security industry.
Kerry Brown is Professor of Chinese Studies and Director of the Lau
China Institute at King’s College, London. From 2012 to 2015, he was
Professor of Chinese Politics and Director of the China Studies Centre at
the University of Sydney, Australia. Prior to this, he worked at Chatham
House from 2006 to 2012 as Senior Fellow and then Head of the Asia
Programme. From 1998 to 2005, he worked at the British Foreign and
Commonwealth Office, as First Secretary at the British Embassy in Beijing,
and then as Head of the Indonesia, Philippine and East Timor Section. He
lived in the Inner Mongolia region of China from 1994 to 1996. He has a
Master of Arts from Cambridge University, a postgraduate diploma in
Mandarin Chinese (Distinction) from Thames Valley University, London
and a PhD in Chinese politics and language from Leeds University.
Professor Brown directed the Europe China Research and Advice Network
(ECRAN), giving policy advice to the European External Action Service
between 2011 and 2014. He is the author of more than ten books on mod-
ern Chinese politics, history and language, the most recent of which are
The New Emperors: Power and the Princelings in China (2014), What’s
Wrong with Diplomacy: The Case of the UK and China (2015) and the
Berkshire Dictionary of Chinese Biography (in four volumes; 2014–2015).
His CEO China: The Rise of Xi Jinping was published in 2016 and was an
Economist book of the year. China’s World will be published in late 2017.