China still center stage in Myanmar

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China pipeline
Mega-project China-Myanmar pipeline

As a no-questions-asked investor, China has been a clever bedfellow with Myanmar, notably the former military junta, a history that skewers sentiment negatively amid the wave of the country’s reformist zeitgeist. But while many a new suitor has brought competition to one of China’s most intertwined satellite states, an economic interdependence remains strong.

China is still the largest investor into Myanmar, according to the latest data from the Directorate of Investment and Companies Administration (DICA), investing $14.18 billion into the country so far in 2013. China also takes the top spot for the amount of permitted foreign investments, with the energy sector receiving the most attention, a senior official at the Myanmar Investment Commission told media.

The standout reason why Myanmar still relies so heavily on China investment is due to regulatory brick walls. The US, EU, Japan and ASEAN countries have all made significant investments over the past year, but are still largely locked in negotiation tug of wars.

Overall, Myanmar reached a jaw-dropping $42 billion in FDI in the year until June, a substantial splash during a second quarter where interest in emerging markets began to wane.

Thailand, Hong Kong, South Korea and the UK are the next top investors into Myanmar, while investment from the US has become more palpable since sanctions were widely lifted in 2012.

Indeed, if negotiations can sally off into concrete deals, then China’s dominant position faces a true threat. Last year, despite it being overrun with the sealing of Chinese projects, also marks a moment of potential decline as large-scale commitments begin to wrap up.

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Reading Time: 2 minutes

Mega-project China-Myanmar pipeline

As a no-questions-asked investor, China has been a clever bedfellow with Myanmar, notably the former military junta, a history that skewers sentiment negatively amid the wave of the country’s reformist zeitgeist. But while many a new suitor has brought competition to one of China’s most intertwined satellite states, an economic interdependence remains strong.

Reading Time: 2 minutes

China pipeline
Mega-project China-Myanmar pipeline

As a no-questions-asked investor, China has been a clever bedfellow with Myanmar, notably the former military junta, a history that skewers sentiment negatively amid the wave of the country’s reformist zeitgeist. But while many a new suitor has brought competition to one of China’s most intertwined satellite states, an economic interdependence remains strong.

China is still the largest investor into Myanmar, according to the latest data from the Directorate of Investment and Companies Administration (DICA), investing $14.18 billion into the country so far in 2013. China also takes the top spot for the amount of permitted foreign investments, with the energy sector receiving the most attention, a senior official at the Myanmar Investment Commission told media.

The standout reason why Myanmar still relies so heavily on China investment is due to regulatory brick walls. The US, EU, Japan and ASEAN countries have all made significant investments over the past year, but are still largely locked in negotiation tug of wars.

Overall, Myanmar reached a jaw-dropping $42 billion in FDI in the year until June, a substantial splash during a second quarter where interest in emerging markets began to wane.

Thailand, Hong Kong, South Korea and the UK are the next top investors into Myanmar, while investment from the US has become more palpable since sanctions were widely lifted in 2012.

Indeed, if negotiations can sally off into concrete deals, then China’s dominant position faces a true threat. Last year, despite it being overrun with the sealing of Chinese projects, also marks a moment of potential decline as large-scale commitments begin to wrap up.

Do you like this post?
  • Fascinated
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