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This article aimed to shed light on viability of politically motivated SinoJapanese aid competition in Southeast Asia and its social and economic implications from the recipients’ perspectives. One of the central messages of this article is, “local conditions matter” for aid projects to attain their expected economic outcomes. Postwar Japan started as a recipient country of World Bank loans, with monumental infrastructure, most of which were considered a success. This article challenged this conventional view and argued that they had mixed results at least in the shortrun for those politically motivated projects. China and Japan seem to be competing over “national pride” rather than “national interests” when it comes to foreign aid in infrastructure. The rivalry challenges the unity of Association of Southeast Asian Nations (ASEAN) from the member countries’ points of view, where there seems to be a widening gap between nations that are increasingly integrated into BRI networks through “connectivity” rhetoric and those that remain disconnected from the network. The paper concluded with the implications of Sino-Japanese aid competition for postCOVID international relations.

Sino-Japanese Competition over the “aid market” in ASEAN : Political Tensions and Consequences