Chinese Economic Expansion and Consequences: Case Study from Large Banana Plantation in Chiang Rai Province

Abstract

Since 2013, China has announced Belt and Road Initiative which results in Chinese economic expansion to several areas in the world. Southeast Asia is one among those areas and serves as outlet of Chinese market. Apart from infrastructure and energy investment, tourism and agricultural capital also flows into northern Lao and Thailand. This paper presents the economic influence using the case of large banana plantation investment in Chiang Rai and its impact, including how government agencies plan to deal with such investment. The study used qualitative methods through in-depth interviews and group interviews, then descriptive analysis is used to discuss on how Soft Power and Chinese Thai Supply Chain created local impact.

The study found that Chinese investment in banana plantation started in 2015 after the mandatory termination of all Chinese plantation contracts after 5 years by Laotian Government. Although such foreign investment will bring income for local communities, there are graves concerns on agricultural chemicals which may create long-term impact as they remain in the soil and seep through fresh water sources. Besides, there are issues on the adequacy of agricultural water, the incoming of labor migrants, etc. This paper points to issues to be considered to avoid serious negative effects from Chinese investment on banana plantation.