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Asean
ChinaDiplomacy

Can China outsmart the United States in the race to build smart cities in Southeast Asia?

  • Region is at the heart of the geopolitical rivalry between the two economic giants, experts say
  • Both have committed to regional partnerships but US is struggling to make its mark

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China and the US are vying for influence in the race to build smart cities across Southeast Asia. Photo: Alamy
Simone McCarthy

A year ago, US Vice-President Mike Pence announced that the United States would support a Southeast Asian plan to transform the region’s rapidly growing cities into hi-tech hubs.

The scheme, known as the Asean Smart Cities Network, involves 26 cities – from Bangkok to Yangon – that had come together to tackle shared problems associated with rapid urbanisation and expanding populations. The plan was to embark on a digital makeover and apply cutting-edge technologies to everything from dealing with river pollution and fighting disease, to improving tax collection and cutting crime.

For the US, which has been watching China steadily increase its economic influence in the region – breaking ground first on railways, ports and motorways via its Belt and Road Initiative, and later with cell towers, fibre optic cables and municipal surveillance equipment built by its tech companies – getting involved was an attempt to keep a stake in the digital revolution unfolding in the nearly US$3 trillion Asean (Association of Southeast Nations) economy.
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The move would “spur renewed American investment in the region’s digital infrastructure”, Pence said at the plan’s launch in November 2018, where he also promised an initial US investment of US$10 million.

The US is keen to boost investment in Southeast Asia. Photo: Shutterstock
The US is keen to boost investment in Southeast Asia. Photo: Shutterstock
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In the meantime, China announced last month that it had launched its own regional partnership to support the Smart Cities Network, which aims to “harvest the opportunities” of the digital revolution.

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