On south-western fringe, China's Silk Road ambitions hit a bump

Kunming Credit: © Manit Larpluechai

A couple of interesting articles today on Southern China. One looks at Kunming, arguably China’s gateway to South-east Asia, from where the Chinese want to extend a high-speed railway to Singapore. But the country faces some obstacles from its neighbours. Laos has yet to begin work, owing to challenges raising even part of the $7bn cost, as well as failing to agree terms with China. Myanmar has cancelled its part in the project, while Thailand wants to fund the line itself – but will only build part of it. There appears to be some fear of allowing China too much control.

Meanwhile in Guangdong and the Pearl River Delta, factories are moving out fast – or upgrading to higher-tech goods. But, as Bloomberg notes, “by moving elsewhere in China, factories may be able to trim wage bills or gain access to cheaper land, but they lose the concentration of suppliers, logistics and services that Guangdong has built up over 30 years”.