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Myanmar’s changing ties with China
AsiaSoutheast Asia

Myanmar warns sanctions over Rohingya genocide will push it closer to China and dismisses ‘debt trap’ concerns

  • International Court of Justice ordered emergency steps to protect Rohingya, threatening Myanmar’s European trade privileges
  • China accounts for a quarter of all foreign direct investment into Myanmar, second only to Singapore, government data shows

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Chinese President Xi Jinping and Myanmar's State Counsellor Aung San Suu Kyi. Photo: Reuters
Bloomberg
Myanmar signalled that closer ties with China offer an economic buffer if human-rights concerns cause Western nations to curb trade privileges or investment.
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The persecution of the country’s Rohingya Muslim minority has sparked global condemnation, and led to an International Court of Justice order last week for emergency steps to protect Rohingya from genocide. The controversy imperils Myanmar’s European trade privileges and is spurring calls for sanctions.

“The more sanctions Western countries impose on us, the more likely that is to boost our ties with our Asian alliances,” Commerce Minister Than Myint said in an interview in the capital, Naypyidaw. “We’ve opened the door to everyone.”

During President Xi Jinping’s visit to Myanmar earlier in January – the first state visit by a Chinese leader in almost two decades – the two countries agreed to expedite several projects as part of the Belt and Road Initiative. Yet a tightening embrace of China risks leaving Myanmar overreliant on its giant neighbour, a concern that has long vexed some officials.

“When it comes to mega projects, we always want to see more options,” Than Myint said in the January 21 interview. “So we usually encourage Western companies not to be worried about doing business here. If they decide not to come, then we will have no choice but to cooperate with Asian partners.”

In records going back to 1988, China accounts for a quarter of all foreign direct investment into Myanmar, second only to Singapore, government data shows.

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Than Myint said Myanmar is aware of risks that come with China-backed investments. Such infrastructure projects have been criticised for debt terms that could leave China in control of critical infrastructure in developing nations.

“Being well-observed about the Chinese debt trap in other developing countries, we will make sure we don’t make the same mistake here,” he said.

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