ABSTRACT
This chapter focuses on the special role China plays in relation to Myanmar’s ethnic armed organizations (EAO). Since this book mainly describes the political economy, this chapter does not directly describe China’s various political activities, such as how it has persuaded EAOs in Myanmar to enter peace talks (the effects of which have been limited, according to China’s special envoy for Asian affairs 1 ). China’s role in the Myanmar peace process cannot be viewed only from a political perspective, which fails to address the key role played by EAOs’ demands for economic development; Myanmar’s peace process and conflict issues are largely related to the distribution of domestic economic interests. For example, how are the jadeite, rare earth, tin, copper, coal, and other resources of northern Myanmar allocated? EAOs have traditionally relied on these mineral resources, and their presence in northern Myanmar has attracted Chinese investors from Yunnan Province and other regions. This has created wealth for local EAO leaders, and local people have also benefited to some extent. As for agriculture, how has northern Myanmar’s agricultural economic development been supported by the state? The Myanmar government has long lacked unified management of these issues. Although the US Agency for International Development has supported the agricultural economy in Myanmar’s ethnic minority areas, its investment has been relatively limited. Therefore, Myanmar’s economic development is largely fragmented. The EAOs of northern Myanmar must therefore be self-reliant; they may plant crops such as rubber, bananas, watermelons, and other crops that are abundant in Myanmar; they also frequently participate in drug trafficking. Overall, northern Myanmar’s economy is still fairly poor, with most people earning a few hundred dollars or less a year on average; subsistence has always been a challenge. In addition, during three years of COVID-19 restrictions, China blocked the border areas, and many mineral resources, crops, and agricultural products could not be exported to China. Given the importance of these political-economic issues, and the complex intertwining of interests in northern Myanmar, this chapter presents a detailed analysis on China-Myanmar relations in the context of ungovernable extrajudicial areas near the China-Myanmar border.
