However, no progress was made on the development of the Myitsone dam and six other hydropower projects totaling US$25 billion in Kachin State. Suspended in 2011 and 2012 after backlash from the public, the projects are expected to generate more than 21,000 megawatts of additional power, some of which will be exported to China.

There was also no concrete solution for the frequent disruptions in trade at Muse, the border town between Myanmar and China. 

The two sides did not provide information on how China would move forward with snail-pace peace negotiations with several armed ethnic groups.

“For China, it wouldn’t be possible to complete their BRI Project if the northern region is not peaceful,” said U Maung Maung Soe, a political observer of Myanmar. China has major projects in the areas controlled by the members of the Northern Alliance. The China-Myanmar gas pipeline project and hydropower projects in the upstream areas of Ayeyarwady River are also in the those areas.

“China will be able to have benefits only if the situation in Myanmar becomes stable. If the situation in Myanmar is unstable, however much China invests, it’s very likely for them to suffer big losses,” said economist U Aung Ko Ko.

The two countries signed a concession agreement and shareholders’ agreement for the deep-sea port in Kyaukphyu Special Economic Zone, an important asset in the China-Myanmar Economic Corridor (CMEC). The CMEC, in turn, is part of China’s Belt and Road Initiative, which spans several countries in Asia.

Development of the Kyaukphyu port in Rakhine State will enhance China’s presence in the Indian Ocean, allowing its oil imports from the Persian Gulf to bypass the Strait of Malacca. Kyaukphyu is already an important oil and gas terminus for the Chinese, where pipelines through which oil produced in Myanmar is delivered and exported to China.

The agreements come after Myanmar in 2018 renegotiated the Kyaukphyu deep-sea port project down to US$1.3 billion from $7.3 billion to avoid taking on too much debt. 

China is already Myanmar’s largest creditor, with the latter owing more than US$4 billion to the Chinese, which is 40 percent of Myanmar total debt to international lenders,  Joint Public Accounts Committee said in a report released in August 2019. Interest on Chinese loans is the highest of all Myanmar’s loans, hitting 4.5pc for some of loans.  

Other developments include  agreements to accelerate negotiations on a framework for the China-Myanmar Ruili-Muse cross-border economic cooperation zone. 

They also include acceleration of a US$2.6 billion Integrated LNG power project in Mee Laung Gyaing, Ayeyarwady, which will take place after a power purchase agreement is signed within the first three months of the year. The plant will produce up to 1390 megawatts of energy when it is complete.

President Xi left Myanmar on Saturday afternoon after a two-day visit.

The trip is Xi ‘s first to Myanmar as president and his first foreign visit this year. Jiang Zemin was the last Chinese president to visit Myanmar, when he signed several economic and border agreements in 2001.

China serves as a no-questions-asked ally to Myanmar, giving it diplomatic cover as the country faces widespread condemnation over its human rights record.

More importantly, China as a top investor and trade partner with Myanmar offers economic insurance if Western nations do impose sanctions on the country. – With reports from the Associated Press

Source: https://www.mmtimes.com/news/myanmar-china-sign-agreements-kyaukphyu-no-mention-myitsone-dam-project-peace-talks.html