How Significant is the China-Myanmar Corridor Project?

How Significant is the China-Myanmar Corridor Project?

Arakha Times (19-November-2024)

Among the projects China aims to implement, the Myanmar-China Corridor project is highlighted by business leaders as one that can contribute to regional development and progress.

The Myanmar-China Corridor project is one that successive governments have been working to implement. However, under the current military council, there have been delays in carrying out the planned projects.

Currently, due to ongoing conflicts in Rakhine State, there is a need to carry out regional development efforts, and China’s Myanmar-China Corridor project is also partially involved in this, according to an economic analyst who spoke to Arakha Times.

He said, “Rakhine State is partially involved in the Myanmar-China Corridor project. This project has the potential to bring regional and state-level development across various areas in Myanmar. Armed groups should understand that for such major projects to succeed, it is essential to collaborate, as successful implementation would lead to the development of our country, our region, and our people.

In the past, only states like Chin State were considered underdeveloped in our country. However, Rakhine State has now become one of the states needing redevelopment, primarily because conflicts have been ongoing for a considerable period, hindering regional development efforts.”

Projects need to prioritize stability and peace in the region, as achieving nationwide stability is essential for implementing major projects, according to business leaders.

In Rakhine State, questions remain as to whether the restart of China-backed projects will proceed smoothly, given the ongoing clashes between opposing sides.

China’s Kyaukphyu deep-sea port project in Rakhine is a significant bilateral initiative between the two nations. Director U Thein Tun Oo from the Strategic Studies Group noted that for the Arakan Army to disrupt this project, it would require considerable strategic effort.

He said, “From the beginning, the Kyaukphyu deep-sea port was established as part of the One Belt One Road initiative. Another route branches off from Mandalay to Yangon and connects to Thilawa. At present, although there are security concerns regarding Kyaukphyu in Rakhine, it remains a major state-level project signed between the two countries.

To speak openly, even the Arakan Army (AA) would find it challenging to pose a threat to this initiative. For them to disrupt such a large-scale project, they would need to carefully strategize. Even in their ultimate dream of secession, they cannot completely dismantle a project of this magnitude.”

Economic analysts point out that the halted Kyaukphyu deep-sea port project in Rakhine State may resume under Chinese leadership.

During the military council’s recent visit to China, discussions and agreements were made on project-related matters, including land leases. This has led to speculations that the Kyaukphyu deep-sea port project might restart.

The agreement for this project was initially signed under Daw Aung San Suu Kyi’s NLD government. Three years after the military coup, on December 26, 2023, the military council ministers signed a renegotiated concession agreement with China’s CITIC group concerning operational rights for the Kyaukphyu deep-sea port.

Under the agreement during the NLD government, the shareholding of the deep-sea port project was divided, with the Chinese company CITIC owning 70% and Myanmar holding 30%. In the first phase of the project, Myanmar’s investment was valued at 1.3 billion dollars.

In the subsequent agreement, the shareholding remained as it was under the original contract. However, the details of Myanmar’s investment value in the first phase were not disclosed or made public.