Comparing Environmental, Social and Governance Impacts of Chinese-led Infrastructure Projects in Africa and Southeast Asia

Comparing Environmental, Social and Governance Impacts of Chinese-led Infrastructure Projects in Africa and Southeast Asia
Image: Getty, Yasuyoshi Chiba/AFP

After close to three decades of international expansion, Chinese construction firms work around the world, frequently implementing similar projects in different regions of the Global South.

Summary

  • This report provides cross-cutting perspectives on environmental, social and governance (ESG) aspects of Chinese-led infrastructure projects in Africa and Southeast Asia.
  • Very similar dynamics have occurred between recipient-country stakeholders and Chinese entities in both regions.
  • ESG regulation in China has developed rapidly, but these standards are not consistently applied in overseas projects.
  • The report identifies the following cross-cutting areas of concern: tender and environmental impact assessment processes; land acquisition, community relocation processes and livelihood disruptions; debt transparency and problematic financial governance; inter-authority conflict and local governance issues in recipient countries; and planning for long-term economic viability and job creation.
  • The report recommends a series of national and regional reforms to mitigate some of these impacts, notably a commitment to full disclosure and full transparency spearheaded by both China and Global South countries as part of China’s Global Development Initiative.
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