Navigating Tripartite Cooperation: Chinese, Western, and Beneficiary Country Engagement in Economic Infrastructure Projects

Abstract

In 2015, the Chinese government proposed tripartite cooperation (Di San Fang Shi Chang He Zuo) as a new approach to promote economic cooperation between Chinese enterprises and western enterprises in a third, beneficial country. This research aims to provide an overview of Chinese tripartite cooperation projects and explore how China, western countries and beneficiary countries cooperate in economic infrastructure projects. To address the research question, data was collected on 68 tripartite cooperation projects in economic infrastructure, particularly in the transportation and energy sectors. Dummy variables were used to measure the degree of engagement of China, Western countries, and beneficiary countries in the four dimensions (state-owned enterprises, government direct financing, high-level government officer meetings, and policy support), as well as cooperation records between the entities of the bilateral partners (China-Western, Western-Local, China-Local). China depends on national capital and investment from state-owned enterprises in tripartite cooperation projects, while Western countries typically rely more on the participation of private sector giants. Beneficiary countries usually provide local policy support to tripartite cooperation activities. Through these efforts, participants can achieve convergence in tripartite cooperation by reconciling divergent interests and goals.