By Annunthra Rangan
“Brunei is an important partner in India’s Act East Policy and Indo-Pacific Vision.”
—Prime Minister Narendra Modi
Brunei’s strategic location in Southeast Asia places it at the crossroads of greater regional and global geopolitical dynamics, particularly in relation to the contentious South China Sea and its interactions with major powers such as China and India. As a claimant in the South China Sea, Brunei has adopted a measured and diplomatic approach to its territorial claims, while simultaneously balancing its economic relationships and geopolitical alliances with these influential nations. This careful navigation of competing interests has become a cornerstone of Brunei’s foreign policy, particularly in the face of China’s growing assertiveness and India’s increasing presence in the region.
China has played a pivotal role in Brunei’s economic development, particularly through substantial investments in key infrastructure projects. These include major ventures such as the Hengyi Industries Sdn Bhd petrochemical joint initiative and the construction of the Sultan Haji Omar Ali Saifuddien Bridge, both of which have been integral to Brunei’s growth. China’s economic engagement has become even more critical as Brunei contends with the depletion of its oil reserves, positioning Beijing as a vital economic partner. However, this reliance on China is not without its complexities, particularly in light of the territorial disputes in the South China Sea.
Brunei’s claims in the South China Sea, specifically over areas within its Exclusive Economic Zone (EEZ), such as Louisa Reef, are based on the principles outlined in the United Nations Convention on the Law of the Sea (UNCLOS). While Brunei has traditionally maintained a low profile compared to other claimant nations such as Vietnam and the Philippines, it has not abandoned its claims. Instead, Brunei has chosen a path of diplomacy and adherence to international legal frameworks, avoiding overt military posturing or confrontational rhetoric in disputed areas. This approach reflects Bandar Seri Begawan’s (Brunei’s capital) broader foreign policy of neutrality and its commitment to peaceful dispute resolution, setting it apart from other Southeast Asian nations embroiled in the South China Sea conflicts.
Beijing’s construction of artificial islands and military installations in the region has raised concerns about potential encroachments on Brunei’s territorial waters. Although China has not directly violated Brunei’s EEZ, the risk remains, especially given China’s expansive claims under its controversial nine-dash line, which has recently been extended to a ten-dash line. This line encroaches on areas close to Brunei’s coastline, bringing Chinese territorial ambitions uncomfortably near to its vital offshore resources.
In the face of these challenges, Brunei has relied heavily on diplomacy and international legal frameworks like UNCLOS to safeguard its territorial interests. However, with limited military capabilities, Brunei’s reliance on external alliances and global diplomatic support is crucial for maintaining its sovereignty.
In contrast to its economic dependency on China, Brunei has also been cultivating a growing partnership with India, a relationship that has gained prominence through India’s Act East Policy and Indo-Pacific Vision. Prime Minister Narendra Modi’s recent visit to Brunei, the first by an Indian premier of state, marked a milestone in the strengthening of bilateral ties between the two nations. The visit celebrated 40 years of diplomatic relations and demonstrated India’s commitment to expanding cooperation in critical areas such as defence, energy and space technology.
A key outcome of Modi’s visit was the renewal of the Memorandum of Understanding (MoU) on space cooperation, under which Brunei continues to host a telemetry, tracking and command station for the Indian Space Research Organisation (ISRO). This partnership, which dates back to 2000, has been crucial for India’s space missions and underscores the growing strategic alignment between the two countries. The renewal of this agreement not only reflects the deepening of scientific and technological cooperation, but also highlights Brunei’s importance in India’s broader strategic objectives in the Indo-Pacific region.
Beyond space cooperation, defence and energy collaboration have also emerged as central components of the India-Brunei partnership. As India continues to diversify its sources of oil imports, particularly through increased purchases from Russia, its energy trade with Brunei has seen a reduction. However, both nations are exploring long-term agreements on liquefied natural gas supplies to meet India’s growing energy needs.
In the realm of defence, discussions between Modi and Sultan Hassanal Bolkiah focused on strengthening maritime cooperation, capacity building and training initiatives, which could enhance Brunei’s security posture amid rising tensions in the South China Sea.
The evolving relationship between Brunei and India provides the former with a strategic counterbalance to China’s economic influence. India’s emphasis on regional stability, adherence to international laws, and peaceful conflict resolution resonate with Brunei’s own foreign policy principles, which prioritise sovereignty and neutrality. While China’s economic investments are critical for Brunei’s infrastructure development, India offers a partnership that aligns with Brunei’s broader geopolitical interests, particularly in terms of security and adherence to international legal frameworks such as UNCLOS.
As Brunei navigates its complex position in Southeast Asia, its ability to balance its relationships with both China and India will be crucial. On the one hand, China remains an indispensable economic partner, providing much-needed infrastructure investments and development assistance.
However, this relationship requires careful management to avoid compromising Brunei’s territorial interests in the South China Sea. On the other hand, India’s growing influence in the region, supported by initiatives like the Act East Policy and Indo-Pacific Vision, offers Brunei an important strategic alternative. By deepening cooperation in space, energy and defence, India provides Brunei with an opportunity to diversify its partnerships and strengthen its security posture without alienating China.
Ultimately, Brunei’s foreign policy is characterised by its careful balancing act between major powers, driven by the need to safeguard its national interests and maintain neutrality. As tensions in the South China Sea continue to simmer, Brunei’s diplomatic approach, grounded in adherence to international law and peaceful dispute resolution, will remain essential. By fostering strong relationships with both China and India, Brunei is positioning itself to navigate the complexities of Southeast Asia’s geopolitical landscape while securing its future prosperity and security.
—The writer is a Research Officer at Chennai Centre for China Studies. Her research interests constitute China-WANA (West Asia and North Africa) relations and human rights