ABSTRACT
This study aims to examine the Chinese economic policies and strategies, and to explore ways and means for Myanmar to manage the implications. Since the establishment of the People's Republic of China in 1949, its ultimate national objective has been to become an economic superpower in 2049. Accordingly, the successive Chinese leaders applied respective economic policies to fulfil this strategic objective. The open-door economic policy was exercised in 1978 to attract the foreign investments. Besides, China wants to promote its role in the international arena through its economic supremacy. Further opening up the economy, it promoted foreign relations to increase its economic role in the international market. Over the past decades, China has enjoyed rapid growth, transforming its economy from poor to middle-income. Its economy has already been the second-largest in the world, exceeding $US8,000 GDP per capita.
Since the President Xi Jinping came to power in 2012, he has substantially stepped up his direct leadership on economic decision-making. He sustained economic reforms of China initiated by Deng Xiaoping. He has launched the Chinese Dream/ Rejuvenation of China as the grand strategy of China to expand its economic influence. While China is attempting to promote economic cooperation with many countries through Belt and Road Initiative (BRI), it is undeniable that Myanmar is one of the important partners in implementing the BRI. Myanmar, having direct access to the Indian Ocean, is geostrategically important for the development of China's Southwestern provinces. Indeed, the objectives of the BRI in Myanmar are shaped by China's “Two-Ocean” Strategy. However, there have been challenges in implementing its economic activities: not limited to the BRI, but other activities, including trade and investments.
Academic literatures are observed on Myanmar-China economic relations from various perspectives. Some literature argues that Myanmar is neither a strategic pawn nor an economic pivot of China in the short and immediate term, but the relationship seems to be based on a mutual need. Some depicts Myanmar as a client state of China. Myanmar has long been categorised as bandwagoning with Chinese power for both protection and profit. China also capitalises on this relationship for its own gain. Based on these literatures, this study investigates the economic policies of China, the activities or strategies in Myanmar, and the impacts of these activities on Myanmar. It also considers the possible ways for Myanmar to manage her impacts. Maintaining internal political stability, and applying effectively its tangible and intangible resources, Myanmar should strive to increase its national power, not to depend too much on any other country in the future. Since growing Chinese influence in Myanmar is also a cause for worry in India, the emerging dynamics in the region need to be carefully monitored and balanced with appropriate counter-action. Therefore, India should increase its contacts and relations with Myanmar for the mutual benefits of the two countries, and to reduce its security concerns.
