As the West leaves a void in Myanmar, China ignores its own advice to invest

While China’s official guidelines have previously cautioned against investing in conflict zones, the temptations in Myanmar are strong. Indeed, under the junta, joint development projects appear to be accelerating

Some analysts say it is a dangerous strategy, as instability endangers billions of dollars. Others say the potential rewards – including rare earth minerals and access to the Indian Ocean – outweigh the risks

Reading Time:7 minutes

Demonstrators outside the Chinese embassy in Yangon, Myanmar, call for the release of detained civilian leader Aung San Suu Kyi and protest against China’s silence over the February 1 military coup. Photo: EPA

Published: 8:30am, 3 Jul 2021Updated: 10:37am, 3 Jul 2021

In May, Myanmar media reported that the ruling junta had reorganised committees that work on the country’s joint projects with China, ousting all civilian leaders and replacing them with its own appointees.

The personnel changes were made to the China-Myanmar Economic Corridor Joint Committee – which oversees a 1,700km infrastructure development plan that will connect Kunming, the capital of Yunnan in southwest China, with Myanmar’s major economic hubs – and the committee overseeing the Myanmar-China Cross Border Economic Cooperation Zones, to be built in Shan and Kachin states.

These developments suggested to some observers that efforts were being made to normalise China-Myanmar ties, views given extra weight by an early June meeting between the architect of Myanmar’s recent coup, senior general Min Aung Hlaing, and the Chinese Ambassador to Myanmar, Chen Hai. In a statement after the meeting, Chen referred to Min Aung Hlaing as the leader of Myanmar.

China’s Foreign Minister Wang Yi then asserted during a meeting with his counterpart Wunna Maung Lwin in the Chinese city of Chongqing that Beijing “has supported, is supporting and will support Myanmar in choosing a development path that suits its own circumstances”.

Myanmar’s Foreign Minister U Wunna Maung Lwin bumps elbows with Chinese Foreign Minister Wang Yi in Chongqing. Photo: AP

Lucas Myers, a programme associate at the Wilson Centre’s Asia Programme, said China was clearly committed to the economic corridor given Chinese President Xi Jinping’s visit to Myanmar last year.

“Beijing currently views the junta as likely to hold onto power, and it therefore hopes to leverage its pragmatic support of the Tatmadaw to advance its stalled projects,” Myers said.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x