Economic growth is being hugely influenced by Chinese investment.
There is no doubt that the Chinese are big rollers in the region. Earmarking areas for growth, their investment is continuing to build economies and aid development. Despite not always been welcomed with open arms, China has played a significant part in the economic growth of Myanmar in the last few years.
As China is gradually becoming more expensive, Chinese companies are looking for alternative places to set up shop to maintain and boost Chinese exports that come at a lower cost.
Economist Edward Lee at Standard Chartered in Singapore commented, “China’s definitely looking at these countries [Myanmar] in general as an area where it can sell products and get good returns for its investments. China itself is getting more expensive for its companies, and that’s reinforcing this trend”.
As Myanmar is opening up, the way it does business is changing. As a transition to democracy prevails, Aung San Suu Kyi was quick off the mark to meet with China to participate in impending collaborations. A sensible move considering China accounts for roughly 40 percent of the country’s trade last year making them Myanmar’s biggest trading partner.
China development in Myanmar is very clear. Currently under construction is a special economic zone on the west coast that includes a power plant. Indicators like this suggest a positive future for Myanmar in terms of economic growth. In fact the International Monetary Fund predicts that the country will experience an 8.1 percent expansion this year. The seconded fastest growing economy after Iraq. Figures that can’t be ignored and illustrate why China plays such a big role in this once sleeping nation.