Chinese investment in Myanmar drops
While interest of other foreign investors in Myanmar is surging, Chinese investment in the newly opened Myanmar economy has fallen over the past year amid strained relations between the two countries.
When Myanmar began a series of political and economic reforms, popular sentiment has apparently been turning against China and its historically close ties with the former military junta.
China is is currently constructing two pipelines that are supposed to transport oil and natural gas from the Bay of Bengal through Myanmar into southern China and has significant interest in Myanmar’s mining industry, but its influence is fading.
In the most significant recent blow to relations between the two countries, Myanmar President Thein Sein stopped a Chinese-backed $3.7 billion hydropower dam project in 2011 in response to local opposition. The project would have supplied electricity to China. Talks on a railway linking Myanmar’s west coast with Kunming in southern China also have been put on hold.
Last week, state-run China Mobile pulled out of bidding for telecommunications licenses in Myanmar in a consortium with Vodafone.
Chinese companies invested $407 million in the country in the fiscal year through March 31, 2013, down from $4.35 billion and $8.27 billion in the previous two years, respectively. Chinese investors accounted for 29 per cent of Myanmar’s total foreign investment during the period.
The drop in Chinese investment caused total foreign investment in Myanmar to fall to $1.42 billion in past fiscal year from $4.64 billion and $20 billion in the two previous years, according to government figures.
[caption id="attachment_10033" align="alignleft" width="265"] Chinese-built pipeline in Myanmar[/caption] While interest of other foreign investors in Myanmar is surging, Chinese investment in the newly opened Myanmar economy has fallen over the past year amid strained relations between the two countries. When Myanmar began a series of political and economic reforms, popular sentiment has apparently been turning against China and its historically close ties with the former military junta. China is is currently constructing two pipelines that are supposed to transport oil and natural gas from the Bay of Bengal through Myanmar into southern China and has significant interest in Myanmar's mining...
While interest of other foreign investors in Myanmar is surging, Chinese investment in the newly opened Myanmar economy has fallen over the past year amid strained relations between the two countries.
When Myanmar began a series of political and economic reforms, popular sentiment has apparently been turning against China and its historically close ties with the former military junta.
China is is currently constructing two pipelines that are supposed to transport oil and natural gas from the Bay of Bengal through Myanmar into southern China and has significant interest in Myanmar’s mining industry, but its influence is fading.
In the most significant recent blow to relations between the two countries, Myanmar President Thein Sein stopped a Chinese-backed $3.7 billion hydropower dam project in 2011 in response to local opposition. The project would have supplied electricity to China. Talks on a railway linking Myanmar’s west coast with Kunming in southern China also have been put on hold.
Last week, state-run China Mobile pulled out of bidding for telecommunications licenses in Myanmar in a consortium with Vodafone.
Chinese companies invested $407 million in the country in the fiscal year through March 31, 2013, down from $4.35 billion and $8.27 billion in the previous two years, respectively. Chinese investors accounted for 29 per cent of Myanmar’s total foreign investment during the period.
The drop in Chinese investment caused total foreign investment in Myanmar to fall to $1.42 billion in past fiscal year from $4.64 billion and $20 billion in the two previous years, according to government figures.
