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China-Myanmar projects must be equally beneficial

By Ge Hongliang (Global Times)    09:54, August 17, 2016

Illustration: Peter C. Espina/GT

 

Aung San Suu Kyi is paying her first official visit to China as Myanmar's state counselor and foreign minister on Wednesday, following her visit last year to China as leader of the National League for Democracy (NLD). Her latest visit also marks her first official trip outside the Association of Southeast Asian Nations (ASEAN) region since the NLD-backed government took office on April 1.

China has played a special role in Myanmar's diplomacy and been a key supporter of Myanmar's economic development. Therefore, issues about economic cooperation, especially China's investment in Myanmar, will be expected to top the agenda in Suu Kyi's talks with Chinese leaders.

Given the two nations border each other, Suu Kyi sees China as an important neighbor who will never move away. Economic ties will inevitably play a key role in boosting bilateral relations between the two nations and the Chinese elements can hardly be ignored in the cooperation.

China overtook Thailand to become Myanmar's largest trade partner in 2011, with bilateral trade between the two nations accounting for one-third of Myanmar's total foreign trade volume. China is also Myanmar's biggest foreign investor. According to Myanmar's official data, China invested in a total of 115 projects worth $15.42 billion in the country from 1988 to the end of 2015, accounting for 26.07 percent of Myanmar's total foreign investment.

Myanmar's growing economic ties with China have substantially enhanced economic and social progress in the Southeast Asian nation. One example can be seen in the country's increasingly convenient transportation. Since the 1990s, Chinese firms have built around 10 reinforced concrete bridges across rivers in Myanmar, facilitating east-west transport. Additional progress can be seen in the power supply which has become more stable, especially after U Thein Sein's government took office in March 2011. The Yeywa hydropower plant, which Chinese firms helped build, ensures better access to a more reliable power supply in Yangon. The power plant in Yeywa is only a small part of how China has contributed to social progress in Myanmar.

If Beijing and Naypyidaw wish to take their economic ties to the next level, it is essential both countries work together to find ways to allow the dividend of economic cooperation to be shared between them.

China is promoting its One Belt, One Road initiative with an emphasis on joint consultation, joint construction and mutual sharing. Myanmar is an important country along the Belt and Road route. But compared with other ASEAN nations, such as Singapore and Malaysia, Myanmar is one of the less developed countries in the region. The situation makes it even more vital that the two countries ensure equal benefits from any joint projects, especially for the sake of economic progress in Myanmar.

While Chinese firms are the biggest investors in Myanmar, they are also exposed to prominent investment risks, as illustrated by the long-suspended Myitsone dam project. Back in 2011, the previous government suspended construction of the China-backed Myitsone dam, claiming the move respected the will of the people. But after a close study, far more complex political reasons appear to be behind the suspension of the project. Conflicts between the former military government and local groups in Kachin state where the dam is located directly undermined the interests of the Chinese developer, China Power International. Kachin local groups saw the dam as part of a conspiracy between the Chinese State-owned firm and the military government and took it as a prelude to the military government sending troops into Kachin. After Thein Sein's government took office in 2011, the local groups, being instigated by various non-governmental organizations (NGOs)moved their anger to the Chinese firm and the dam, and successfully lobbied against construction of the dam.

Conversely, if the Chinese firm could have struck a balance between relations with Myanmar's central government, local government and the local public from the start, and communicated properly about the construction process and future benefits, the population likely would not have sought the suspension of the project. Even if the project had been suspended due to conflicts between the military government and the local government, local people and other groups who may have benefited from the project might have even been willing to stand up for the project and get it restarted. Obviously, the Myitsone dam project has taught Chinese firms investing in Myanmar a good lesson. Furthermore, according to media reports, Myanmar had set up a committee to review the Myitsone dam project, which indicated there may be hope yet in getting the project resumed.

The lesson learned is that joint projects not only involve Chinese firms and the Myanmar government, but also depend on the balance between the central government, local government and local population. It also means that Chinese firms need to further improve quality in their construction so that more people may tangibly benefit from the projects. In doing so, they can also face challenges from the Western media and NGOs in Myanmar. Investment from Chinese firms in Myanmar will be an unavoidable topic in Suu Kyi's upcoming talks with Chinese leaders, but during this key phase of Myanmar's peace process, China's focus on the sharing of project dividends will surely produce tangible benefits to all parties concerned.

The author is a research fellow with the Charhar Institute and the College of ASEAN Studies at Guangxi University for Nationalities. bizopinion@globaltimes.com.cn 

(For the latest China news, Please follow People's Daily on Twitter and Facebook)(Editor: Yuan Can,Bianji)

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