Concerning Chinese Presence in Myanmar

China’s investment in Myanmar has not resulted in any substantial economic gains...

Burma PM Thein Sein and China Premier Wen Jiabao in Beijing. Photo: generationaldynamics.com

(BRUSSELS Burma Times) - China and Myanmar share a 2,000-km border, and Myanmar is looked upon as the key to China’s pursuit of regional and border stability and to fulfilling its need for natural resources. China today is Myanmar’s most important trading partner and one of its most important investors. There is a two way relation between China and Myanmar currently.

China aspires to increase its influence in South Asia region for the exploitation of Myanmar’s natural resources by outbidding all other players by paying a higher price for these goods, engaging in the construction of necessary infrastructure at its own cost, and providing financial support to uphold the Junta as also a political umbrella in the international community.

China also gains using Myanmar as a gateway to the Indian Ocean and is completing the construction of oil and natural gas twin-pipeline project includes a 1,100-kilometer pipeline from Kyaukryu port on the west coast of Myanmar to Kunming, capital of Yunnan Province, a large-scale crude oil unloading wharf and a terminal at Kyaukryu port, with nearby oil storage and transportation facilities On the other hand Myanmar’s Junta wants to gain legitimacy despite its abysmal human rights record and be recognized as the official government of the country.

To gain political legitimacy, it uses the country’s natural resources to bargain with other countries in exchange for economic gain, which will then translate into political support for the regime.

China’s investment in Myanmar has not resulted in any substantial economic gains from Myanmar. Sino Myanmar trade is thus constructed around the colonial exploitative principle of unequal exchange. s. From the 1990s to 2006, Myanmar’s imports from China grew much faster than its exports to China. In 1990, Myanmar’s exports to China were US$33 million and in 2006 they had increased 6.9 times, reaching US$229.7 million. During the same period of time, its imports were US$137.7 million and increased 9.6 times to US$1.098 billion.

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