ABSTRACT
Beijing has a vested interest in peace, stability, and economic development in the neighboring regions and countries. These are critical factors for China's own security, stability, and socioeconomic advancement. Since the opening up and the start of the reform process in the late 1970s under the helm of Deng Xiaoping, the subsequent Chinese leaders opted to keep a largely low profile in their foreign policy to guarantee the desired stability. With Xi Jinping, however, the Chinese foreign policy and diplomacy became more assertive. China-critical neighbors, such as India and Vietnam, view the Belt and Road Initiative (BRI) as a strategic means to increase China's presence and influence rather than a tool for win-win cooperation, as China frames it. In addition to bilateral factors, regional and great powers impact China's position in its neighborhood. Most importantly, this includes the United States, but also Japan, India, Russia, and others, who all have complex if not openly adversary relations with Beijing. China's current lack of will to compromise on territorial disputes is an additional hurdle that often undermines its ability to establish more friendly links with its neighbors. All in all, its immediate neighborhood remains a crucial area for China where it faces immense challenges from various directions.
