Oil pipeline deal inked
Xi hails Myanmar’s participation in Belt & Road initiative
Chinese President Xi Jinping met Myanmar President U Htin Kyaw on Monday as the two countries reached an agreement to put a vital oil pipeline into operation.
Xi hailed Myanmar’s active participation in the country’s Belt and Road initiative to promote bilateral cooperation in trade, infrastructure and border economic zones.
He praised Myanmar’s support of and participation in the Belt and Road initiative, and said the two countries will focus on cooperation in Myanmar’s Kyaukpyu Special Economic Zone and livelihood, such as education and rural development, the China Central Television reported. U Htin Kyaw said that Myanmar will never forget China’s help, and that his country will insist on the one- China policy and actively participate in the Belt and Road initiative. The two leaders
signed several deals, including the Sino- Myanmar oil pipeline, which had suffered a two- year delay.
On Monday night, the oil tanker United Dynamic carrying 140,000 tons of crude oil arrived at Madae Island, the starting point of the pipeline, marking the beginning of the pipeline’s operations.
The $ 1.5 billion pipeline, which will allow China to import oil through the Bay of Bengal, is estimated to have a capacity of 22 million tons of crude oil per year.
U Htin Kyaw is on a six- day China visit. In Xi’an, capital city of Northwest China’s Shaanxi Province on Friday, he said that his country is studying how to participate in the Belt and Road initiative, as an increasing number of countries are taking part in the project.
Huge benefits
With favorable geological conditions and abundant natural resources, experts pointed out that Myanmar will benefit from the Belt and Road initiative, and is also beneficial to China due to enhanced regional connectivity along the BangladeshChina-India- Myanmar ( BCIM) Economic Corridor, and will likewise promote cooperation with members of Association of Southeast Asian Nations ( ASEAN).
“Myanmar sits between China and Southeast Asia and serves as an important economic hub in the Bay of Bengal and the Indian Ocean. It will help China implement the 21st Century Maritime Silk Road project, reduce threats to its logistics routes from other countries and safeguard maritime security,” Ge Hongliang, a research fellow at the Charhar Institute and the College of ASEAN Studies at Guangxi University for Nationalities, told the Global Times.
Song Qingrun, a research fellow at the China Institute of Contemporary International Relations, added that with an abundance of labor, natural resources and an improved investment environment, Myanmar will benefit from the initiative in terms of employment, agriculture, tourism and fiscal revenue.
As a crucial link to the BangladeshChina-India- Myanmar Economic Corridor, Myanmar may become a convenient corridor for China to access the Indian Ocean, Song noted.
Myanmar State Counselor Aung San Suu Kyi will visit China and Europe in May, and will attend the Belt and Road summit in Beijing, Thai newspaper The Nation reported, quoting Zaw Htay, director general of the Office of the State Counselor.
Suu Kyi visited China in August 2016 and met with Chinese President Xi Jinping to strengthen bilateral relations, mutual respect, trust, equality and benefits. She said Myanmar welcomes China’s Belt and Road Initiative and the BCIM.
Song added that the initiative will also accelerate the establishment of Myanmar’s economic zone near the China border, which will boost trade at the most important crossing between Myanmar and China.
Myanmar’s Muse Central Eco- nomic Zone, located near the China border in eastern Myanmar, will be completed in the fiscal year 2017- 18, the Xinhua News Agency reported. Over 80 percent of Myanmar’s trade by land to China is conducted through Muse.
Highest foreign investor
China and Myanmar enjoy steady collaboration, and have achieved some results. But experts warn that the Belt and Road initiative will not benefit Myanmar if the conflicts in the northern and western parts of the country prevail and the religious problems remain unresolved.
For example, violence frequently breaks out in Rakhine state between Buddhists and Muslims.
China enjoys the highest level of foreign investment in Myanmar, at $ 18.53 billion since 1988.
A consortium of six foreign companies led by China’s CITIC has won the rights to build an industrial park and a deep- sea port in the Kyaukpyu Special Economic Zone in Rakhine state, which will improve the country’s infrastructure, employment and livelihood.
A 2,806- kilometer- long natural gas pipeline, running from Kyaukpyu to Kunming, Southwest China’s Yunnan, Guizhou provinces and South China’s Guangxi Zhuang Autonomous Region, has transferred 3.4 billion cubic meters of gas to a gas branch company as of October 2016.