Mekong Dams as a Strategic Asset

In the midst of a global pandemic, some Southeast Asian countries such as Laos, Cambodia or Vietnam are facing another emergency caused by the lack of water in a river vital to these states: the Mekong River. The provinces of Ben Tre, Ca Mau, Kien Giang, Long An and Tien Giang which are some of the main rice producers in Vietnam had to declare a state of emergency last March. Among the causes of this situation are drought, salt water filtration and also the continuous expansion of hydroelectric dams both in the headwaters of the river controlled by China and along its course.

The Mekong River is the 12th longest river, the 7th longest river in Asia and the most important in Southeast Asia. Its 4,350 km cross the territories of China, Myanmar, Laos, Cambodia, Thailand and Vietnam and it is a vital and strategic resource for the riparian countries. Millions of people in Southeast Asia depend on the waters of the Mekong for their survival, be it for fishing or for growing rice or fruit, not only for sale but also for daily consumption. This way of life is being jeopardised by the proliferation of hydroelectric dams and the consequent containment of the upstream waters which prevent the regular flow of the river and with it, the economic activities downstream.

China has built 11 hydropower dams that hold back more than 47 billion cubic metres of water that should be flowing downstream. In turn, Laos has undertaken the construction of numerous dams throughout its territory with Chinese funding under the Belt and Road Initiative. Examples of these hydroelectric dams are the Namlik 1 and 2, Nambeng or NamOu 6 dams. All these dams have made Laos one of the "batteries" of South East Asia, with still considerable room for expansion of hydroelectric production. These projects have generated not only energy capacity for industrialisation, but also opportunities for economic growth for the regions where these infrastructures are located. 

However, the problem of building hydroelectric dams is not only based on achieving a correct balance between the country's energy needs and the vital needs of the population dependent on the river's resources. An increasingly important element is the influence and power that water control gives to the power that dominates the headwaters of the river: the People's Republic of China.

In fact, China has developed a strategy in recent years to extend its influence over the countries of Southeast Asia. At the bilateral level, China enjoys excellent relations with countries such as Cambodia or Laos whose dependence on aid, investment and exports and imports from China is growing. This dependence has become an important asset for China in Southeast Asia and has been used, for example, to block any ASEAN communication or action that could have negative effects on China and its position regarding the South China Sea.

Since 2016, China has been creating an institutional structure in the Mekong region around the Lancang-Mekong Cooperation. This institution brings together all of the countries bordering the Mekong and has become the first forum of Chinese origin in the region. Through this mechanism, China has gradually displaced other initiatives such as the Lower Mekong Cooperation, the Mekong River Commission or the Greater Mekong Subregion. China's idea is to use its political, economic and military weight to shape the region to its advantage and one of the best ways to make the member countries accept this privileged role of China is to use Mekong flows to threaten and punish those countries that oppose its interests. In fact, although Lao's hydroelectric dams have great potential for the economic development of the country and the region, they depend on China's willingness to let the water flow at the river's headwaters into the reservoirs of neighbouring countries. 

China's foreign policy in Southeast Asia has been characterised, in recent years, by the use of a range of initiatives to consolidate its presence and bring the countries of the region within its sphere of influence. Despite the declarations of the Chinese leaders on the creation of common development areas on equal terms and pragmatic cooperation, the truth is that the Mekong has become not only an area of beneficial cooperation for all, but also a strategic asset for establishing Beijing's hegemony in the region.