December 2, 2015

China or India: Difficult choice for new Myanmar government

Even as the Aung San Suu Kyi-led National League for Democracy (NLD) is expected to form a new government in Myanmar, China has lost no time in diagnosing the import of the party's victory and is all set to recalibrate its policy towards the country to steal a march over India towards gaining a deeper strategic depth in this ASEAN nation.

China's standpoint became clear when Chinese Foreign Minister Wang Yi said in the middle of November that his country expects Myanmar to continue its friendly relations with Beijing although a new dispensation is set to emerge in Naypyidaw.

China has reasons to feel uncomfortable as Suu Kyi has close personal bonds with India. General Aung San, her father and the legendary Burmese liberation hero, enjoyed close personal relationship with the Indian political leadership. Suu Kyi herself spent a good amount of her life in Delhi. She studied first in the Jesus and Mary Convent and then in Lady Shri Ram college.

Because of this fact, China had extended her a warm reception in Beijing in June when President Xi Jinping had met her, breaking protocol.

The ground reality is that China is way ahead of India in matters of strategic depth in Myanmar. In a classic example of establishing relationships with the Indian Ocean littoral states, China has recently constructed two pipelines originating at Kyaukpyu in Myanmar and terminating in Kunming for transporting oil and gas. The purpose is to lessen reliance on the route passing through the Malacca Strait.

Given Myanmar's strategic importance in South Asia, China has been constantly increasing its economic footprint in the country. Last year China's cumulative foreign direct investment in Myanmar stood at $14 billion. Bilateral trade reached $6 billion in 2013 while the corresponding figure for India-Myanmar trade was around $2 billion. (Courtesy of The Economic Times)

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