China Advances Port Expansion in Brunei Amid US-China Trade Tensions

• Sommana Yan
• 29 August 2025
• Uncategorized
• 1607 Views

China is accelerating its trade ties with Southeast Asia through a significant port upgrade at Muara, Brunei’s largest port. The expansion project, led by a state-owned Chinese company, aims to boost the port’s capacity to 500,000 TEUs and is expected to be completed by the end of 2027, with an investment of approximately USD 278 million.

As the US-China trade war intensifies, Southeast Asia has become increasingly crucial for China, with exports to the region rising 16.6% last month, while exports to the US plummeted over 20%. In response to this surge, the US has been pressuring Southeast Asian nations to curb the transshipment of Chinese goods.

The Muara port development includes building a new container terminal and enhancing existing facilities, aiming to strengthen Brunei’s economic position under China’s Belt and Road Initiative. The port already plays a key role in the country’s trade, handling more than 90% of its non-oil and gas commerce.

Recently established, a direct shipping route connects Muara with Qinzhou in China, facilitating trade and improving logistics, part of China’s New International Land-Sea Trade Corridor, which links multiple Chinese cities to global ports.

• Economic and finance