ABSTRACT

Since the inception of the Belt and Road Initiative and the Asian Infrastructure Investment Bank, China has adopted various multilateral and bilateral approaches in order to expand its influence. In a move to extend its influence across all the mainland Southeast Asian countries, China established the Lancang-Mekong Cooperation (LMC) mechanism at the sub-regional level. Many signs indicate that the LMC is poised to eclipse all the other existing sub-regional cooperation initiatives in mainland Southeast Asia. Drawing upon the minilateralism literature, this chapter attempts to analyse China’s institutionalisation in the Mekong Basin sub-region. It seeks to address one fundamental question: why is China still interested in establishing the LMC when its influence is already dominant in the region? This chapter joins the debate by using minilateralism theory to argue that China is intentionally seeking to improve its relations with Mekong countries by selectively using water resources management cooperation to shape regional security governance. It uses minilateralism as a cover to exclude other external players by highlighting identity, selectively setting the agenda and providing regional public goods. Although this minilateral initiative lacks multilateral substance, it complements China’s bilateral approach and enhances its dominance in the region. Lower Mekong countries are motivated to participate in the LMC because minilateralism addresses urgent issues on water governance. Therefore, the inherent exclusiveness of minilateralism will inevitably have a significant impact on regional governance.