Beijing’s giant state-owned enterprises are playing an increasing role in China’s build-up in the South China Sea and could seek to cement their dominant position in coming years, according to new research. The work by academic Xue Gong and published by Singapore’s ISEAS Yusof Ishak Institute this week sheds light on a little-examined element of rising tensions across the vital trade route, showing extensive work by Chinese SOEs in developing infrastructure and tourism, as well as oil and gas, some in hotly disputed areas. Some experts and regional diplomats believe the strong commercial presence could further complicate any future regional solution should Beijing, which research shows has encouraged firms to operate, protect them politically and militarily.

China's State Companies Cementing Lucrative Role In South China Sea. (2018, August 10-11). BusinessWorld, p. S1/1.