Xi Jinping Comes to Myanmar

Last month, the president of China Xi Jinping visited Myanmar. Xi is the first Chinese President to visit Myanmar in 19 years. While China and Myanmar have had diplomatic ties in place for 70 years, the relationship is one mostly of necessity and not of choice. Myanmar during military rule depended heavily on China to buy everything from agriculture products, telecom support, to mining. China also looks at Myanmar as direct access to the Indian Ocean and allowing its oil imports to bypass the Strait of Malacca. To do this they’ve agreed to developing the Kyaukphyu Special Economic Zone (SEZ) deep seaport project.

Many in Myanmar are weary though of its government making deals with China. Seen primarily as a partner that initiates one sided deals. China had developed the Myitsone Dam Project in Myanmar for the production of electricity, which China buys from Myanmar very cheap. The Myitsone Dam was paused after public outcry over the environmental impact the damn would cause. China needs Myanmar to complete it’s dream of the Belt and Road Initiative (BRI) that will develop Myanmar’s economic corridor for China. And so Xi’s visit to Myanmar was a push to speed up cooperation in developing the China-Myanmar Economic Cooridor.

During the two-day visit, Myanmar and China Signed 33 memorandum of understandings (MOU’s) many with the BRI in mind, most notably the Kyaukpyu SEZ and Deep-Sea Port in Rakhine State. The agreements call for cooperation in sectors including infrastructure mega-project development like railways, industrial and power projects, trade, investment and human resources development, and others.

The 33 MoUs, Agreements, Protocols and Exchanges are as follows:

1. Concession Agreement and Shareholders’ Agreement of Kyaukphyu Special Economic Zone and Deep-Sea port Project
2. Handing over of the Muse-Mandalay Feasibility Report
3. Handing over and Receipt of Detailed Feasibility Reports of Mandalay-Tigyaing-Muse Expressway and Kyaukphyu-Naypyitaw Highway
4. Letter of Intent regarding New Urban Development of Yangon City
5. MoU of Feasibility Study for Yangon River Estuary West Bank Protection Project
6. Feasibility Study for Mandalay-Bagan Railway Line Project
7. Letter of Intent for the acceleration of Mee Lin Gyaing Integrated LNG Power Project
8. MoU on Conducting Feasibility Study of the Myanmar-China Power Interconnection Project
9. Exchange Letter for the Feasibility Study on the China-aided resettlement project for Internally Displaced Persons in Kachin State
10. MoU on Accelerating Negotiation on the Framework Agreement on the China-Myanmar Muse-Ruili Cross Border Economic Cooperation Zone
11. Implementation Agreement for Procurement of Passenger Coaches by Interest Free Loan
12. Implementation Agreement for the Kunlong Bridge Project
13. MoU of Feasibility Study for Watalone Tunnel Project
14. Exchange Letter for the Feasibility Study on 3-year Development Plan of Border Areas
15. Protocol on Plant Inspection and Quarantine Requirements for Exporting Rice from Myanmar to China
16. Protocol on Quarantine Health Requirements for Slaughtering Bovine to be exported to China from Myanmar
17. Protocol for Heat Processed Cocoon to be imported from Myanmar to China
18. Exchange Letter for the Project of Agricultural Product Quality Control Centre
19. Exchange Letter for the Project of Hybrid Rice Research Centre
20. MoU on the Establishment of the Working Group for the Promotion of Smooth Trade
21. MoU on Local Cooperation under the Framework of Joint Building China-Myanmar Economic Corridor (CMEC) between the Yunnan Province and Mandalay Region
22. Implementation of the China-aided Upgrading of No. 2 Industrial Training Centre Mandalay Project
23. MoU on Enhancing Infrastructure Development Cooperation
24. MoU on Promoting Production Capacity and Investment Cooperation
25. MoU on Human Resources Development Cooperation
26. MoU between the two Ministries of Foreign Affairs of Myanmar and China on Strengthening Cooperation
27. Agreement on Mutual Provision of Embassy Land and Buildings
28. Handover Certificate of the Yangon Police Command Centre
29. Exchange Letter for the Provision of 6 Patrol Boats to the Myanmar Police Force
30. MoU on Cooperation between Chinese and Myanmar Football Federations
31. MoU on the Establishment of Province/Region Friendship between Yunnan Province and Yangon Region
32. Agreement on Cooperation between National Radio and Television Administration of China and Ministry of Information of Myanmar
33. MoU on Co-organizing the Myanmar Day of 2020 Lancang-Mekong TV Week

When Myanmar opened to the world for business, many hoped that Myanmar would start looking west to balance China out. Myanmar in desperate need for development continues to look for China need. Myanmar maybe is at risk to being lost to China if Europe and the United States cannot develop deeper relations and investment in this strategic country. It’s not too late, but it’s getting close.

Written By- Mr. Charles Ryan Russell