This article (see here) has a interesting and detailed review of the current situation.
China’s economic penetration of Burma deepened in the first decade of the twenty-first century as the West tightened economic sanctions against the regime. Bilateral commerce reached $2.4 billion in 2007-2008, accounting for a quarter of all Burma’s foreign trade and a 60 per cent increase over what it was three years ago (Mizzima News, October 24, 2008). Chinese companies have invested heavily in the country’s manufacturing, mining, power generation and energy sectors, and in 2008-2009 China emerged as Burma’s number one investor, pumping $856 million into the country, or 87 percent of all foreign investments (Deutsche Presse-Agentur, July 14). Close relations with Burma have also enabled China to improve its energy security situation. In March, after several years of negotiations, an agreement was signed to build twin oil and gas pipelines from the port of Kyaukphyu in Arakan State to Kunming, Yunnan Province. Construction of the 1,200 mile pipelines is scheduled to begin this month, with China footing the $2.5 billion bill. When completed in 2013, the pipelines will not only be used to transport oil and gas from Burma’s offshore energy fields to the PRC, but also from the Middle East and Africa, thereby bypassing the Strait of Malacca, which Chinese strategists view as a strategic vulnerability (China Brief, April 12, 2006).
The most important ceasefire group to reject the SPDC’s demand is the United Wa State Army (UWSA) which has an estimated 20,000 men under arms. Formerly the shock troops of the BCP, China has maintained close links to the UWSA over the past two decades. The U.S. government labeled the UWSA a narcotic trafficking organization on May 29, 2003. Chinese businessmen have extensive commercial interests in the Wa region (both legal and illegal) and the area provides a conduit into Burma proper: according to some estimates, one to two million Chinese citizens have taken up residency in the country and now dominate the commercial life of Upper Burma centered on Mandalay. Over the years, China has ensured a steady supply of weapons to the UWSA, including shoulder fired surface to air missiles, artillery and anti-aircraft guns (Jane’s Intelligence Review, March 2008). Moreover, Beijing has been able to use its influence with UWSA leaders to redirect the flow of illegal narcotics produced in the Wa area, including methamphetamines, away from China and into Thailand, Laos and Cambodia [2]. Nevertheless, narcotics produced in Burma continue to find their way into southwest China, fueling a major drug addiction problem there.
Interesting...
