ABSTRACT

During the National League for Democracy (NLD) regime, Myanmar’s political structure was not a simple combination of military and NLD forces; nor was its economic structure either state or free-market capitalism, but was rather a mixture of public and private industries in both urban and rural areas. Myanmar’s industrial foundations remain weak; its agricultural sector is predominant yet fragile. The economic reforms that needed to be carried out in Myanmar—at least from the perspective of the NLD—were not aimed solely at wealthy and privileged dignitaries, but targeted the people, providing opportunities for vocational skills training, employment, and financing for local businesses. Given such a set of priorities, China had to clearly understand the political economy behind its overseas interests in Myanmar; it needed to cooperate politically with different parties representing the interests of Myanmar people. Protecting China’s interests requires cooperation with both state-owned and private enterprises in Myanmar; it also requires consideration of the fragile rural economy and conditions of small and medium-sized businesses and urban workers in Myanmar. The chapter also discusses how this complicated social and political situation in Myanmar drove China to adopt a diversified multilevel diplomatic strategy.