Mekong Subregion (consists of five countries: Cambodia, Laos, Myanmar, Thailand and Vietnam) is geo-strategically important as China’s southern “backyard” and a linchpin between South Asia and Northeast Asia, and this region may become a new “hot spot” for US-China competition after the South China Sea issues. Furthermore, this region as a “buffer zone” for China to develop its influence over the wider regions of Asia-Pacific and the Indian Ocean. China approached the Mekong Subregion countries with a proposal for an equivalent Beijing-led institution, binding these and China closer economically and politically. China has formed closer economic linkages with countries in the region through expanded trade and investment linkages. Given this situation, the paper elucidates China’s objectives to the Mekong Subregion, and current situation of Bejing’s rising influence on this region. Meanwhile, the paper assesses the response of the Mekong Subregion countries to China’s influence.