ABSTRACT
The chapter examines the changing investment relationship between China and Myanmar due to changes in Myanmar's investment policies. These changes are part of Myanmar's economic reforms after the opening up of the country. The chapter also discusses Myanmar's investment policy reforms and how these affect its economic diplomacy practices with China. Myanmar's economic diplomacy practice through the reform process is also seen from the overall perspective of ASEAN's economic diplomacy practices. The reform process in Myanmar is compared with the reform process undertaken by China, which also shares the same policy objective, which is to attract more foreign direct investment into the country. China's investment policy reform is not driven by the country's political reform process but rather it is based on the need to attract higher quality investments into the country. Economic diplomacy has gained increasing attention from major economies at the end the Cold War as a means for enhancing economic prosperity.
