JOIN USChinese President Xi Jinping’s two-day visit to Myanmar was significant for several reasons. Not only was his visit the first by a Chinese President to Myanmar in 19 years but also, it saw the two sides clinch 33 deals, the largest number ever between the two countries. Thirteen of the deals have to do with infrastructure projects. In addition to extending loans worth millions of dollars, China will execute the infrastructure projects. Myanmar is under immense global pressure for its treatment of Rohingya Muslims and China’s extension of financial and other support is timely and likely to be appreciated in Myanmar. In turn, Chinese investment in Myanmar’s infrastructure will boost its Belt and Road Initiative (BRI). During Xi’s visit the two sides agreed to push forward plans to develop the China Myanmar Economic Corridor (CMEC). They have signed a concession agreement and a shareholders’ agreement for development of the Kyaukphyu Special Economic Zone. In addition to developing a deep seaport at Kyaukphyu, China has built gas and oil pipelines and improved overland transport linking it with its Yunnan Province. Oil, gas and other cargo from Africa and West Asia is already being transported through this route to China. The deals finalised during Xi’s visit will not only strengthen China’s presence in the Bay of Bengal but also provide it with a shorter trade route through Kyaukphyu, one that reduces Beijing’s dependence on the crowded Malacca Straits.
No announcement was made on the $1.3 billion Myitsone project, which Myanmar suspended in 2011 following mass protests. It does seem that with general elections due in a few months, the National League for Democracy government is keen to avoid riling voters by reviving an unpopular project. Despite its deep dependence on China and Beijing’s capacity to create trouble for it by supporting various ethnic militias, Myanmar has not kow-towed to Chinese demands on Myitsone. It is holding its ground.
Still the string of deals signed during Xi’s visit signal a strong relationship. BRI projects in Myanmar will provide China with overland access to, and strategic presence in, the Bay of Bengal and the Indian Ocean. Will Myanmar’s heavy borrowings from China result in its walking into a debt trap and importantly, will that force a debt-ridden and desperate Myanmar to hand over strategic assets to the Chinese? Is Myanmar heading down the treacherous road that Sri Lanka has taken? These are questions that are being discussed and debated in India. Can India provide Myanmar with a better option? In addition to extending friendly loans and speeding up its implementation of projects in Myanmar, India must step up its people-centric engagement there.