BURMA-CHINA ECONOMIC RELATIONS

Chinese Investment in Burma
With limited options due to Western economic
sanctions -- and with China's rapid growth -- the GOB has
increasingly looked to China as its best source for FDI.
During GOB Prime Minister Thein Sein's April 2009 visit to
China, he encouraged additional Chinese investment in Burma.
GOB statistics indicate that as of November 2009, China had
invested USD 1.3 billion in Burma.  China's Ministry of
Commerce reports only USD 500 million FDI stock in Burma at
the end of 2008.  Both sources likely underreport China's
investment; an International Crisis Group estimate places PRC
FDI over USD 2 billion since 2003.  Mining, electrical power,
and oil and gas seem to be the leading sectors for Chinese
FDI, with the GOB reporting PRC investments of USD 866
million, USD 281 million, and USD 124 million, respectively.
(Note:  Oil and gas investment will likely increase
substantially with the construction of dual pipelines across
Burma, as described below.)  According to Winston Set Aung, a
Burmese economist with access to GOB officials, Chinese firms
import most of their labor for projects in Burma.  While the
percentage of Chinese labor varies depending on the industry
and project, Chinese employees are almost always used for
skilled labor, and often for manual labor.
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