What China wants

What China wants
by -
Mizzima

‘We have more opportunity for cooperation. This momentum will not change’
China and Myanmar have shared a close relationship for decades. Despite a drop in Chinese investment since President U Thein Sein's reformist government came to power in early 2011, China continues to be Myanmar's top investor in extractive industries and in such sectors as technology and agriculture. Ambassador Yang Houlan spoke to Mizzima Business Weekly's Portia Larlee in a wide-ranging interview that included the importance of bilateral relations, Myanmar’s transition and the suspension of major infrastructure projects.

 Lwin Maung MaungHas Myanmar's transition towards democracy strengthened or weakened the bilateral relationship with China.

I think we can say in the past four years – Myanmar's transitional period – there has been progress in politics, economy, social and other fields. Generally speaking, this is positive. Not only domestic but also international relations have improved. This is good, not only for Myanmar government, but especially for Myanmar people, ordinary people. They benefit from this improvement. In the globalised world, if Myanmar was isolated it could not be developed economically and socially.

Myanmar opened and the world can accept Myanmar as a member of the international community. That will give Myanmar more opportunity for further development and will also give more opportunity for China-Myanmar relations. Of course there are some changes and the relations between our two countries face some challenges. It is key for our two countries to have close coordination and cooperation and any challenges can be settled, that's no problem. I am very optimistic about the momentum of the two nations. We have a strategic partnership of cooperation. This will be mutually beneficial and good for the region's development also.

The bilateral relationship was often described in the past as being, pauk-pauk, as close as brothers?

Generally speaking, this friendship momentum has not changed much.

What are the challenges in the relationship?

How can the environment [in Myanmar] be improved for foreign investment? There is still much to do. Of course, we need to learn more from the experience of other countries. Our companies are less experienced in foreign investment than European countries and Japan and other countries. We need to learn more from other countries, especially about communicating with local people and public relations. The people should know about the benefits of projects. In China, in the past, we have done projects without explaining them. The people won't know about the benefits if we don't communicate with them and it will be easier for them to have demonstrations.

How has the decision by the United States to strengthen ties with Myanmar affected relations between Myanmar and China?

Until now, there has been no problem. We have tried to set new relations among the big countries especially China-United States relations. That is very important. We want to set a new model; we don't want to copy the Cold War. In Myanmar, until now, we have communications with the US ambassador. If we have some problems, we can communicate with each other.

Myanmar's quick development is also in the interest of China. As a neighbour, if Myanmar is not developed, this is not good for China. If Myanmar develops quickly, this will provide more opportunities for mutually beneficial cooperation. That is why we hope to see more foreign investment from other countries – not only China.

What is China's role in Myanmar's economic development?

In the global world, a country cannot develop in isolation. That is why we hope our neighbours will develop quickly. Myanmar is a very important neighbour of China and Myanmar's development is the expectation of the Chinese government and Chinese people.

Now we have more opportunity for cooperation. This momentum will not change. Both sides have a very strong desire to promote this kind of relationship. Friends can be chosen but neighbours cannot. We have to pay attention to neighbours, including Myanmar. We have similar histories; China was isolated for several decades. The one difference is that China opened up a little earlier than Myanmar so has lessons and experience to share with Myanmar.

Do you see the outcome of the election in 2015 potentially affecting this 'momentum'?

Until now [since the 2011 election], there has been political stability and no big troubles. But there is still one year and about four months to go. We hope the different parties will understand each other, especially for the people's interest and the country's interest. Political stability and economic development are always important for the society and the people. We hope nothing can change this momentum.

Even though there are some differences between the parties especially regarding constitutional changes. The most important thing for China is respecting the people's choice. If people choose to change it [the constitution] we, of course, support it.

A plan to build a high-speed railway from Kyaukphyu in Rakhine State to Yunnan Province has been suspended after a three-year memorandum of understanding on the project between Myanmar and China expired this year. Are you hopeful that the project will be revived?

We respect the people's views. If we want to build these links we should get support from the people and the government. I read media reports that people oppose these projects. I have some doubts because I have stayed in many countries and I have not seen people oppose this type of connection. In the global world how can you develop if you are isolated?

How will Myanmar benefit if the high-speed rail project is implemented?

Kyaukphyu wants to build the economic zone and develop its port, but, without connection, how can you do this? How can you move equipment to the economic zone? How can you move the production out? I don't think people oppose this project. I think the government should do something to encourage people to have these connections.

In Tibet we also built this type of railway. Local people strongly support it and are very happy about this connection. This type of connection will promote development of the local economy and the local people's lives.

What do you think about the suspension in 2011 of the Myitsone dam project, in which China was a partner, due to public opposition?

Actually we understand concerns about certain projects. Both governments should set a mechanism to follow-up. The Chinese company [China Power Investment Corporation] has invested US$2 billion and built a hospital, school, villagers’ houses. They have started many projects for locals and spent so much money.

The government changed but the agreement signed before that should not be changed. How do we settle this issue properly? I am not saying we need to start the project but we need to communicate to find a solution. The company [China Power Investment Corporation] has had such a big loss, but whether it can start or not, we should respect the people's opinion and views.

Power shortages are a very big problem for Myanmar's development, especially industrialisation. Without electricity, how do you develop industries? Hydropower is most pro-environment, compared with others. Now the problem is we need to address people's concerns. For example, environment and land allocation issues. We need some measures to lead people in the right direction. There should be enough electricity for industrial development. We should respect people's choice; we have no other choice. The [Myanmar] government can maybe do something to clear-up the misunderstanding.

What impact has the suspension of the rail and dam projects had on investor sentiment in China towards Myanmar?

We understand that in order to follow international practice, Myanmar needs more time but is developing quickly. I don't think this [suspension of the rail and dam projects] has had an impact on investors because in other fields more and more people are interested in Myanmar in areas like technology and agriculture development.

Is there more concern in China about investment in Myanmar now than there was before the Thein Sein government came to power in early 2011?

No, generally speaking, we are optimistic.

Please comment on Wanbao's role in the controversial Latpadaung copper mine?

This issue is very complicated. Both Myanmar and China need to learn from this type of project. We know there are some problems, but generally speaking, we have a strong desire to peacefully settle the issue and try to do more for the local people.

What image do you think Chinese businesses have in Myanmar?

In Myanmar the big projects almost all have Chinese investment so it is easy to be criticised. Myitsone, the copper mine, the pipeline are the biggest. Other countries have smaller projects. China's hydropower project was stopped but India's was also because people did not support it. Of course, this has a negative impact on investment from other countries. I have heard from Western companies that are worried about China's projects. They feel if they invest in this kind of sense they will also meet some troubles. Generally speaking, the trouble projects are few. We have several hundred projects in cooperation with Myanmar but only a few have had troubles - and these are exaggerated.

Please describe China's humanitarian role in Myanmar. What support is China providing in Kachin State where more than 100,000 people have been displaced by armed conflict.

Next year we will provide $5 million through the Chinese Red Cross for IDPs for food and housing. They will also build schools. Donations will also come from the private sector.

Do you speak Myanmar?

Mingalaba! Only a little.

What do you most enjoy about your role as ambassador to Myanmar?

Myanmar people are very friendly. I like staying here. Most Myanmar people are Buddhist and believe in harmony.