Burma and China's cold embrace:
Chinese migration, investment, and roads through Burma to India, the Middle East, and Europe (25-06-07)
By Jon Fernquest[Introduction|Vocabulary|Article]
[Reading Questions|Answers]
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Today's article by Burma expert Larry Jagan looks at one of the most important yet neglected and understudied strategic relationships in the world, the relationship between China and Burma.
For further reading and continually updated information on the Burma-China border area check out the Yunnan Fringe section of Australia National University's New Mandala blog edited by Andrew Walker and Nicholas Farrelly .
Reading Questions
Here are some questions to guide your reading (See answers at end):1. How and why has Burma become more important in China's relations with Southeast Asia recently?
2. How has official contact between the governments of China and Burma increased recently?
3. Which business sectors in Burma are being targeted by the Chinese for cooperative efforts?
4. What part of China's economic development plans is Burma critical to?
5. How much and what kind of Chinese migration has there been into Burma during the last decade?
6. What kind of investments have the Chinese made in Burma? Where have these investments been made.
7. How does Chinese migration into Burma support or undermine political change in Burma? (Use inference, express your opinion)
8. How and why is China planning to use Burma as a transit point point for shipping goods to India, the Middle East, and Europe?
9. How has China been pressing Burma for political reform and to mend relations with the west?
10. Where and how does Beijing see American influence spreading in Southeast Asia?
11. What implications does the spread of American influence have for Sino-Burmese relations, as Beiging sees it? (Use inference)
Bangkok Post Article June 21, 2007
ANALYSIS / SINO-BURMESE RELATIONSChina's thumb in every Burmese pie
Rangoon is now Beijing's best buddy in Southeast Asia and China's influence is visible everywhere across BurmaBy LARRY JAGAN
Burma has now become China's most important ally in Asia. China's support for the Burmese junta has recently strengthened immeasurably, as the Chinese leaders have made Rangoon the cornerstone of their revised strategy towards Southeast Asia in the face of what it fears is the growing and unwanted influence of the United States in the region. Since the beginning of the year there has been a flurry of diplomatic and business visits between the two capitals, with the aim of boosting economic, trade and technology ties. This included a secret mission by the Burmese army chief, General Thura Shwe Mann, to Beijing in May.
But their burgeoning relationship is not without some irritation, as Beijing realises its close relationship with its unpopular Asian ally is likely to increase pressure on them from Burmese political activists and the international community.
In early June, Burma's acting prime minister Thein Sein visited Beijing where he met senior Chinese legislators from the National Peoples' Congress and discussed a wide range of issues including political and economic matters. Almost immediately the Burmese government hosted a large delegation from Beijing, from the China-Asean Association which included government officials, legislators and businessmen. China is anxious to explore cooperation with Burma in almost all economic and business areas. During the visit of provisional Chinese officials three months ago, some 600 businessmen from both countries discussed mutual cooperation covering timber, bamboo and furniture, rubber, hydroelectric projects, construction, mining, transportation, tea products, beverages, sugar mills, textiles, fertiliser and chemicals, electric and electronic products, livestock and fisheries, machine parts and farm equipment.
Some time ago China decided that Burma was crucial to its economic development, especially for the more backward southern regions of the country which have lagged behind the economic development along China's eastern coast. But until recently, China's leaders have feared that Burma's military junta lacked real legitimacy and could collapse overnight, leaving Beijing's military and economic investment in the regime worthless. There is no doubt that China's greatest fear remains Burma's stability. More than a million Chinese farmers, workers and businessmen have crossed into Burma in the last 10 years and are working and living there. The Chinese authorities fear that any upheaval in Burma would result in a mass exodus of Chinese back across the border, creating increased industrial and social unrest in their border regions.
In the past few years Chinese businessmen and provincial government enterprises have boosted their investment in Burma: Lashio, Mandalay and Muse are virtually Chinese cities now. Even in Rangoon, the Chinese are involved in building a special tax-free export zone around the port.
China already has major oil and gas concessions in western Burma, and is planning overland pipelines to bring it to southern China.
Burma is an important strategic transit point for goods produced in southern China. They want to transport these by road to the Rangoon port for shipment to India, the Middle East and eventually Europe. Repair work is under way on Burma's antiquated internal road system that links southern China, through Mandalay to Rangoon.
Now there are fresh plans to rebuild the old British road through northern Burma that would connect southern China with northeast India. The Chinese have agreed to finance the construction of this highway using 40,000 Chinese construction workers. Some 20,000 would remain after the work was completed to do maintenance work on the road.
"When this happens the northern region of Burma will be swamped by Chinese government officials, workers, lorry drivers and businessmen - it will no longer be Burma," according to a senior Western diplomat-based in Bangkok who has followed Burmese affairs for more than a decade.
Already along the Burmese border with China, every small town has restaurants and stores run by migrants from China, many have been there for more than a decade. Chinese teachers are also being recruited to work in the Chinese-language and bilingual schools that are popping up in many of the major cities in northern Burma. Already in the major border towns in Shan state like Mongla and Muse, only the Chinese currency - the renminbi or yuan - is used; Chinese calligraphy dominates the landscape: billboards, street signs and shopfronts almost all use Chinese characters exclusively; very little Burmese writing can be seen.
In some towns along the border the clocks are set to Beijing standard time rather than Burma's clock to facilitate cross-border contact, according to local Burmese officials.
The Chinese authorities are planning to use Burma as a crucial transit point, not just for the products grown or manufactured in southwest China, but as a means of transporting goods from the country's economic power-houses along the eastern seaboard.
"By shifting the transit route away from the South China Sea and the Malacca Straits to using Burma's port facilities to reach South Asia, the Middle East and Europe they hope to avoid the dangers of crowded shipping lanes and pirates - the Malacca dilemma as Beijing calls it," a senior Chinese analyst told the Bangkok Post on condition of anonymity.
But Beijing is also well aware that the junta's failure to implement political reform may backfire, not only for Rangoon, but on China as well. Already under increased international criticism for its unswerving support of what the international community regards as pariah states - especially Burma, North Korea, Sudan, and Zimbabwe - Beijing has begun to distance itself and take a more active role in trying to influence its allies to be more flexible. That has certainly been the case as far as Rangoon is concerned.
Beijing has been far more pro-active behind the scenes in pressing Burma's military rulers to introduce political and economic reform as quickly as possible. They have also quietly raised the vexed issue of the detained opposition leader Aung San Suu Kyi, suggesting that she be freed. But when Gen Thura Shwe Mann told the Chinese leaders in May that this was impossible as she still posed a security risk, they backed off.
Instead, they are now pressing both Washington and Rangoon, behind the scenes, to start a secret dialogue to try to overcome some of the issues which keep Burma internationally isolated.
Beijing is also alarmed by Rangoon's nuclear ambitions and the recent deal with Moscow to build a nuclear reactor in Burma. China's leaders have already communicated their displeasure and warned the Burmese they could not rely on Chinese assistance if anything went wrong.
China's leaders were also extremely annoyed at Rangoon's re-establishment of diplomatic relations with Pyongyang.
"They no longer trust North Korea and were dismayed that two important neighbours had effectively gone behind their backs and resumed relations," according to a Chinese government source.
Officially, of course, Beijing welcomed the development.
But despite these irritations, China's leaders have realised that Burma is by far its strongest ally in Southeast Asia.
For some time Beijing has eyed suspiciously the growing American influence in the region, especially in what it regards as its backyard and natural sphere of influence - Cambodia and Vietnam, and to some extent in Laos as well.
China's leaders now fear that in Thailand the opposition Democrat party is going to sweep back into power if elections are held according to plan in November or December. The Chinese also see the Democrats as avowedly pro-US and have already threatened to overhaul or rescind the Free Trade Agreement between Bangkok and Beijing. And, of course, Beijing would not welcome Aung San Suu Kyi coming to power in Rangoon, as they regard her as an American puppet.
So for Beijing, this growing potentially hostile environment in Asia means their only trustworthy and truly anti-American ally in the region remains Burma's military regime.
Vocabulary (in discussion above)
Lashio - the largest town in the norhtern Shan states of Burma near the Chinese border (See Wikipedia)
Mandalay - the second largest city in Burma and the largest city in Upper Burma, the former capital of the Kingdom of Burma (See Wikipedia)
Muse - Burmese town near Chinese border town of Ruili (Shweili) in Yunnan
Mongla, Mong La - a small Burmese on the Chinese border that has a lot of gambling and prostitution for Chinese (See Le Monde Diplomatique article)
Sino-Burmese Relations - the formal relationship between the government of China (Sino) and the government of Burma
have a thumb in a pie - is involved with or has an interest in
have a thumb in every Burmese pie - is involved in everything that is going on in Burma
the cornerstone of - the most important and fundamental part of
a flurry of x - x appears suddenly and is highly active for a short time (a snow flurry is when a lot of snow falls suddenly for a short period of time)
burgeoning - growing and developing rapidly
burgeoning relationship - a relationship that grows rapidly
political activists - people whose vocation is to bring about social or political change (in support of, or opposition to, one side of an often controversial argument) (See Wikipedia on activism)
a delegation to x - a official group sent to x to have discussions on an issue
provisional - temporary (appointed for the present but may be changed)
provisional Chinese officials - Chinese officials that might change
backward - undeveloped and poor
* backward southern regions
legitimacy - being legally acceptable (See glossary)
lacked real legitimacy - other countries and many of the country's own citizens felt that the government was not legal
an upheaval - a big change causing lots of trouble
a mass exodus from x - a large movement out of x to another place (movement of people or businesses to another place)
tax-free export zone -
a concession - a special right or privilege to run a certain kind of business for a certain period of time, usually given by the government (See glossary)
swamped by - have a large amount, too many to manage
a lorry - a truck
are popping up - are appearing, are coming into existence
Chinese calligraphy - Chinese writing, Chinese chracters written with a brush (See Wikipedia)
facilitate cross-border contact -
transit - carrying goods and people between places
crucial - important
a transit point - a place travelled through to get to somewhere else, a place or point along a transportation route
a crucial transit point - an important point along a route
the country's economic power-houses along the eastern seaboard -
the Malacca Straits - (See Wikipedia on the Straits of Malacca and piracy in the Straits of Malacca)
pirates - modern pirates attack and steal things from cargo ships (See Wikipedia on modern piracy)
anonymity - not knowing a person's name (See glossary)
on condition of anonymity -
backfire - go wrong, not work properly
swerve - turn suddenly to avoid a danger (for example, he swerved his car to avoid hitting a cow)
unswerving support - constant, continual, unchanging
unswerving support - continual support
a pariah - disliked by others, will not associate with or be friends with
pariah states - countries that do not have a lot of friends or allies
distance oneself - do not become too friendly (with bad or embarassing people)
* begun to distance itself
a role - a function in a situation or society (for example, he has a management role in the company)
take a more active role in - getting more involved in an activity, participating more in, takign a leadership role in
pro-active - acting in advance to cause change and improvement (rather than merely passively reacting to events as they happen; See glossary)
vexed - annoying, disturbing
raise an issue - talk about or mention an issue
raised the vexed issue of - talk about or mention an issue (that people don't want to talk about)
backed off - not asking or demanding something anymore
behind the scenes - not visible to the public
a secret dialogue - secret diplomatic discussions
internationally isolated -
a nuclear reactor - power generator using nuclear fuel (See Wikipedia)
ambitions - what you want to achieve or be in the future
nuclear ambitions - wants to build a nuclear reactor (a symbol of scientific and technical achievement and potential military power))
re-establishment of diplomatic relations with -
dismayed that - worried and afraid that
gone behind their backs, do behind their back - do without them knowing
welcomed the development - something happened that you liked, appreciate something that happened
eyed x - looked carefully at x
suspicion - not belieiving, lack of trust (believing that what seems true could be false, what seems good could be bad)
suspiciously - with suspicion
eyed suspiciously - looked at carefully without believing
what it regards as its backyard and natural sphere of influence -
avowedly - declaring to be
avowedly pro-US - declaring to be pro-US
overhaul - fix, repair (with lots of changes)
rescind - halt or withdraw a law or legal agreement
overhaul or rescind the Free Trade Agreement -
an puppet - a doll which moves by pulling strings
an American puppet - a political leader controlled by America
hostile - unfriendly, disapproving, threatening agression or violence
hostile environment - unfriendly environment
Answer Key:
1. How and why has Burma become more important in China's relations with Southeast Asia recently?
Supposedly, because of the "growing and unwanted influence of the United States in the region" China has recently increased support for Burma's military regime and made the country its most important ally in Asia.
2. How has official contact between the governments of China and Burma increased recently?
a. Diplomatic visits between the two capitals
b. Business visits between the two capitals
c. Secret mission to China by chief of the Burmese army.
c. Burma's Prime Minister visited Beijing in early June.
("Since the beginning of the year there has been a flurry of diplomatic and business visits between the two capitals, with the aim of boosting economic, trade and technology ties. This included a secret mission by the Burmese army chief, General Thura Shwe Mann, to Beijing in May.")
3. Which business sectors in Burma are being targeted by the Chinese for cooperative efforts?
Almost every business sector possible, including:
a.. timber
b. bamboo and furniture
c. rubber
d. hydroelectric projects
e. construction
f. mining
g. transportation
h. tea products
i. beverages
j. sugar mills
k. textiles
l. fertiliser and chemicals
m. electric and electronic products
n. livestock and fisheries
o. machine parts and farm equipment
4. What part of China's economic development plans is Burma critical to?
The development of the less developed southern region of China, especially Yunnan.
5. How much and what kind of Chinese migration has there been into Burma during the last decade?
There have been over a million migrants from China into Burma most of whom could be classified as economic migrants:
a. Farmers.
b. Businessmen
c. Workers
("More than a million Chinese farmers, workers and businessmen have crossed into Burma in the last 10 years and are working and living there.")
6. What kind of investments have the Chinese made in Burma? Where have these investments been made.
There has been a lot of investment in towns near the border (Lashio, Muse) and in Upper Burma (Mandalay), but there has also been Chinese investment in the coastal region of Lower Burma (Yangon).
Oil and gas from western Burma will be transported by pipeline to Yunnan from "western Burma" (Arakan).
("In the past few years Chinese businessmen and provincial government enterprises have boosted their investment in Burma: Lashio, Mandalay and Muse are virtually Chinese cities now. Even in Rangoon, the Chinese are involved in building a special tax-free export zone around the port.
China already has major oil and gas concessions in western Burma, and is planning overland pipelines to bring it to southern China.")
7. How does Chinese migration into Burma support or undermine political change in Burma? (Use inference, express your opinion)
Massive Chinese migration into Burma and investment in Burma makes China a stakeholder in Burma's political future. Sudden political changes and an increased democratic voice in Burma could threaten this investment and Chinese population in Burma. A democratic government could well vote the Chinese out of Burma causing disruptions in Yunnan and the southern provinces of China.
("The Chinese authorities fear that any upheaval in Burma would result in a mass exodus of Chinese back across the border, creating increased industrial and social unrest in their border regions.")
8. How and why is China planning to use Burma as a transit point point for shipping goods to India, the Middle East, and Europe?
Roads are being built and improved from the Chinese border in Yunnan: 1. down to the coastal regions of Lower Burma, and 2. across to the Annam region in India. ("the old British road through northern Burma")
Goods will be shipped through Burma from the southern provinces of China nearest to Burma such as Yunnan, as well as from the economically most developed provinces of China's eastern seaboard.
Shipping goods through Burma avoids the crowded shipping lanes of the Mallaca straights.
9. How has China been pressing Burma for political reform and to mend relations with the west?
a. They have been pushing Burma's leaders to "introduce political and economic reform as quickly as possible."
b. They have tried unsucessfully to get Aung San Suu Kyi freed.
c. They have pressed Burma and the US to hold secret talks.
d. They have tried to disuade Burma from pursuing its nuclear plans.
10. Where and how does Beijing see American influence spreading in Southeast Asia?
a. It sees American influence increasing in Cambodia, Vietnam, and "to some extent Laos as well."
b. It sees the Democratic Party in Thailand as:
i. Likely to win in the next elections in November
ii. "Avowedly pro-US,"
iii. Likely to "overhaul or rescind" the existing Thai-Chinese FTA.
c. Beijing sees Aung San Suu Kyi as an "American puppet."
11. What implications does the spread of American influence have for Sino-Burmese relations, as Beiging sees it? (Use inference)
a. China will continue supporting undemocratic military regimes in Burma.
b. Burma is China's most important and reliable ally in Southeast Asia as well as Asia.
