Chinese Investment in Myanmar: Beyond Myitsone Dam

Sub-title: 

How national security concerns sealed the varying fates of Chinese investment projects in Myanmar.

Description: 

"Almost nine years have passed since the Thein Sein administration unilaterally announced the suspension of construction work on the Myitsone dam in September 2011. The building of the controversial hydroelectric dam is a gargantuan Chinese investment project in Myanmar, with an estimated total cost of $3.6 billion, and with a planned reservoir area larger than the size of Singapore. The suspension followed increasingly severe public protests in Myanmar expressing opposition to the Myitsone dam project. Naypyidaw credited the suspension decision to the “people’s will, and many analysts have thus attributed the unexpected suspension to the victory of popular anti-China sentiments and anti-dam movements, following Myanmar’s domestic political transition. If the “people’s will” really brought the Myitsone dam project to a halt, might other Chinese overseas projects be at risk of a similar fate? The dam project was not the only Chinese mega-project undergoing construction in Myanmar at that time. Two other multi-billion-dollar projects, namely, the Letpadaung copper mine project and the Sino-Myanmar oil and gas pipelines project, also encountered severe public opposition and pressure when Myanmar started its partial transition from military dictatorship to quasi-civilian semi-democracy. Although the three projects have similarities in terms of their design, implementation, and the public backlash they faced, the setbacks they experienced varied greatly. Since the Myitsone dam project was unilaterally suspended by former President Thein Sein, the construction work remains shelved without any renegotiation. In contrast, the Letpadaung copper mine project experienced a two-year suspension, investigation, and renegotiation before it resumed, while the Sino-Myanmar oil and gas pipelines project was never suspended and has been operational since the completion of construction work in 2015. To understand why these projects encountered varying degrees of success, it is necessary to take into account the contexts of the three consecutive Myanmar governments within which these projects were operational: the military government before the political transition in March 2011, the quasi-civilian government of Thein Sein from March 2011 to March 2016, and the National League for Democracy (NLD)-led government since then. Doing so reveals that the “people’s will” was not the primary reason why Thein Sein unilaterally suspended the Myitsone dam project. Rather, national security concerns led Myanmar’s leaders to make different decisions on similar projects under different contexts. The plans for all three projects were finalized between 2009 and 2010, when Myanmar was still ruled by the military junta, known as the State Peace and Development Council (SPDC). Myanmar had experienced Western sanctions and isolation during the era of military dictatorship. China not only was Myanmar’s largest trading partner and foreign investor, but also became its biggest regime supporter in the international community at this time. The maintenance of a good relationship with China was one of the main priorities for Myanmar’s leadership, to ensure regime survival and national security. Thus, Myanmar satisfied China’s demands in this period because the cost of rejecting China was intolerable..."

Creator/author: 

Ruosui Zhang

Source/publisher: 

"The Diplomat" (Japan)

Date of Publication: 

2020-07-22

Date of entry: 

2020-07-22

Grouping: 

  • Individual Documents

Category: 

Countries: 

Myanmar, China

Language: 

English

Resource Type: 

text

Text quality: 

    • Good