"This article explores the function of a transnational road in China-Myanmar relations from a perspective that reflects on Myanmar’s experience. It makes two key points. Firstly, Myanmar’s dependent relationship with China is illuminated if one applies a New Economic Geography perspective to economic processes. Secondly, these processes did not lead to a permanent dependency structure through which China assumed the dominant position; the structure is changeable, subject to action by Myanmar. The latter point indicates that China’s influence is greatly contested by the smaller country, and that the interaction of economic and political factors impact on the Myanmar-China relationship, particularly at local sites. This article focuses on economic activities at the city level, in order to assess advantages and disadvantages of the relationship. The cities that were chosen as the units of analysis are Ruili and Mandalay. As the cities are situated on the main road connecting Myanmar to China, the relationship is quite intense. This article explores the key characteristics of this economic relation via the road, focusing on the connectivity of Mandalay and Ruili. This article will focus on the processes of industrial relocation in Ruili and Mandalay to assess benefits Myanmar gains from the bilateral relationship. Using a New Economic Geography approach associated with the work of Krugman1 , a core-periphery pattern was applied as the theoretical framework to explain industrial relocation and agglomeration. Consequently, the analysis focuses on spatial relations and factors that form the relational structure. In addition, this article also highlights the political and economic transitions in Myanmar since 2010 that led to change in the relational structure. It also draws on fieldwork, which is used to illustrate how connectivity has impacted Mandalay and northern Myanmar..."