CHINA IN BURMA: THE INCREASING INVESTMENT OF CHINESE MULTINATIONAL CORPORATIONS IN BURMA?S HYDROPOWER, OIL AND NATURAL GAS, AND MINING SECTORS

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Updated September 2008...INTRODUCTION: Amidst recent international interest in China?s moves to secure resources throughout the world and recent events in Burma1, the international community has turned its attention to China?s role in Burma. In September 2007, the violent suppression of a peaceful movement led by Buddhist monks in Burma following the military junta?s decision to drastically raise fuel prices put the global spotlight on the political and economic relationships between China and neighboring resource-rich Burma. EarthRights International (ERI) has identified at least 69 Chinese multinational corporations (MNCs) involved in at least 90 hydropower, oil and natural gas, and mining projects in Burma. These recent findings build upon previous ERI research collected between May and August 2007 that identified 26 Chinese MNCs involved in 62 projects. These projects vary from small dams completed in the last two decades to planned oil and natural gas pipelines across Burma to southwest China. With no comprehensive information about these projects available in the public domain, the information included here has been pieced together from government statements, English and Chinese language news reports, and company press releases available on the internet. While concerned that details of the projects and their potential impacts have not been disclosed to affected communities of the general public, we hope that this information will stimulate additional discussion, research, and investigation into the involvement of Chinese MNCs in Burma. Concerns over political repression in Burma have led many western governments to prohibit new trade with and investment in Burma, and have resulted in the departure of many western corporations from Burma; notable exceptions include Total of France and Chevron3 of the United States. Meanwhile, as demand for energy pushes many Asian countries to look abroad for natural resources, Burma has been an attractive destination. India, Thailand, Korea, Singapore, and China are among the Asian countries with the largest investments in Burma?s hydropower, oil and natural gas, and mining sectors. Foreign direct investment (FDI) in Burma?s oil and natural gas sectors, for example, more than tripled from 2006 to 2007, reaching US$ 474. million, representing approximately 90% of all FDI in 2007. While China has embraced a foreign policy of non-interference in the internal affairs of other states, the line between business and politics in a country like Burma is blurred at best. In pursuit of Burma?s natural resources, China has provided Burma with political support, 6 military armaments,7 and financial support in the form of conditions-free loans.8 Investments in Burma?s energy sectors provide billions of US dollars in financial support to the military junta, which devotes at least 40% of its budget to military spending, 9 only slightly more than 1% on healthcare, and around 5% on public education.10 These kinds of economic and political support for the current military regime constitute a concrete involvement in Burma?s internal affairs. The following is a brief introduction to and summary of the major completed, current and planned hydropower, oil and natural gas, and mining projects in Burma with Chinese involvement. All information is based on Chinese and English language media available on the internet and likely represents only a fraction of China?s actual investment.

Source/publisher: 

EarthRights International

Date of Publication: 

2008-09-00

Date of entry: 

2010-09-03

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  • Individual Documents

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Language: 

English, Burmese, Chinese, Spanish

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pdf

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