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China, Myanmar revive hopes for Bay of Bengal deep water port in Kyaukphyu under Belt and Road Initiative

  • Renewed push for Citic-led project in Rakhine state comes amid continued clashes between ethnic rebel groups and the ruling Myanmar junta
  • Port expected to allow Beijing to bypass South China Sea for oil imports is cited as ‘major part’ of 1,700km China-Myanmar Economic Corridor

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Kyaukphyu port will offer China an alternative route for energy imports from the Middle East, avoiding the Strait of Malacca. Photo: Xinhua
China and the Myanmese military government have signed a supplementary agreement for the Kyaukphyu deep water port, as both sides seek to get the stalled Belt and Road Initiative project off the ground.
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The renewed push for the project in Myanmar’s restive western Rakhine state comes amid escalating violence between ethnic rebel groups and the ruling junta, which has prompted repeated security warnings from the Chinese mission.

Chinese state-owned Citic Group will, as agreed in 2018, maintain a 70 per cent stake in the port, which is expected to give China access to the Bay of Bengal as an alternative route for oil imports.

Top Citic executives, Chinese diplomats and junta officials attended the signing of an addendum to the project concession agreement, in Myanmar’s capital Naypyidaw on Tuesday.

The Kyaukphyu deep-sea port is a “major part” of Beijing’s belt and road strategy as well as the China-Myanmar Economic Corridor, and of “great significance to practical cooperation” between the two countries, Citic Group president Xi Guohua said during the ceremony.

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