Chinese government and the coup junta agreed to accelerate implementation of the Kyaukphyu Deep-Sea Port project in Arakan (Rakhine) State, along with other key projects linked to the China-Myanmar Economic Corridor (CMEC), including the Muse-Mandalay Railway, according to a joint China-Myanmar statement issued on June 17 following junta leader-turned-president Min Aung Hlaing's visit to China.

“Both sides attached importance and expressed readiness to finalize and sign the Belt and Road (BRI) cooperation plan in a timely manner. The two sides agreed to promote the implementation of the CMEC and steadily promote cooperation on major corridor projects such as the Kyaukphyu Deep-Sea Port and the Muse-Mandalay Railway,” the statement said.

The Kyaukphyu Deep-Sea Port project is a major strategic infrastructure undertaking jointly developed by China and Myanmar on Maday and Kadaychi islands in Kyaukphyu Township. The project forms a key component of BRI and CMEC, both flagship infrastructure and connectivity schemes.

The initial phase of the project is expected to involve an investment of approximately 1.3 billion USD. The project is being developed through a joint venture in which China's state-owned CITIC Consortium holds a 70 percent stake, while Myanmar holds the remaining 30 percent.

Once completed, the port will accommodate world-class cargo vessels and oil tankers exceeding 1,000 feet in length, allowing them to berth directly at the facility.

“Both sides agreed to deepen cooperation in the energy and electricity sectors, and to accelerate the timely implementation of mutually-agreed infrastructure, public service and capacity-building projects in accordance with Myanmar’s development priorities, with a view to advancing sustainable development, improving local livelihood and contributing to the shared prosperity of both countries,” the statement also said.

“Furthermore, both sides will leverage the China-Myanmar oil and gas pipelines, steadily advance power grid interconnection, and explore economically and environmentally sustainable energy partnerships,” it added.

The agreement comes as heavy fighting continues in Kyaukphyu Township between junta forces and the Arakan Army (AA), with the AA controlling parts of the area that encompass sections of the Chinese-backed projects.

During his visit to China, Min Aung Hlaing reportedly agreed to facilitate bilateral trade through the operationalization of a direct settlement mechanism between the Chinese yuan (RMB) and the Myanmar kyat (MMK).

According to the joint statement, both sides also expressed support for expanding trade and investment cooperation in sectors of mutual interest, including agro-processing, petroleum, and energy.