Myanmar: China and the Kyaukpyu Deep Sea Port

Description: 

"In the meetings, President Xi focussed on three main projects under the Belt and Initiative and part of the CMEC (China-Myanmar Economic Corridor). These were the New Yangon Project, the Kyaukpyu Deep Sea Port with the SEZ (the latter only to sweeten the deal and keep the Myanmar side interested) and the China-Myanmar Border Cooperation Zone. China in the mean time had already completed an oil pipeline project from Kunming to Kyaukpyu and also a gas pipe line between the two ports. The Gas pipe line was started in 2013 and the Oil Pipe line started functioning fro April 2017. The projects were rushed through despite local objections. The Gas and Oil pipe lines together with the Kyaukpyu deep sea port are ostensibly meant to develop the south western hinterland of China, but the real reasons were strategic. The Port would help China avoid the vulnerable straits of Malacca. The ongoing spat with United States and the countries in the region looking for strategic alliances like India with Australia, the need for an alternate route for safety and security of supplies to the Chinese hinterland has become critical to China. While the Chinese side initially pushed for a large project with an investment of over 7 Billion Dollars, the Myanmar side in its negotiations reduced the project to 1.3 billion and also increased Myanmar’s stake in the project to 30 percent. Even this amount is too big a sum for Myanmar and there were always fears that Myanmar by borrowing from Chinese Banks may get into a debt trap as it happened to Sri Lanka vis a vis Hambantota. While the deep Sea Port will only help China and not Myanmar, the deal was sweetened with a parallel project of a special economic Zone for which the stakes for the two sides are yet to be finalised. At that point of time, Myanmar was not aware of the possible spread of the deadly Virus unleashed by China. With the rapid spread of the Virus in other countries and the possibility of its economy being very adversely affected, Myanmar launched an Economy Relief Plan on April 27, 2020. It was an effort to meet the exigencies that surfaced in Myanmar after the Covid-19 (Wuhan Virus) was officially (though delayed) declared by WHO. The Plan consisted of 7 objectives or Goals, 10 Strategies, 30 Action Plans, and 76 Actions. Without going into full details of all actions contemplated we shall restrict ourselves to the seven goals. These included..."

Creator/author: 

Dr. S. Chandrasekharan

Source/publisher: 

"Sri Lanka Guardian" (Sri Lankan)

Date of Publication: 

2020-06-29

Date of entry: 

2020-07-10

Grouping: 

  • Individual Documents

Category: 

Countries: 

Myanmar, China

Administrative areas of Burma/Myanmar: 

Rakhine State

Language: 

English

Resource Type: 

text

Text quality: 

    • Good