Nian Peng International Pressures, Strategic Preference, and Myanmar’s China Policy since 1988 International Pressures, Strategic Preference, ’ and Myanmar s China Policy since 1988 Nian Peng International Pressures, Strategic Preference, ’ and Myanmar s China Policy since 1988 123 NianPeng National Institute for SouthChina SeaStudies Haikou,Hainan,China ISBN978-981-15-7815-1 ISBN978-981-15-7816-8 (eBook) https://doi.org/10.1007/978-981-15-7816-8 ©SpringerNatureSingaporePteLtd.2021 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpart of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission orinformationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar methodologynowknownorhereafterdeveloped. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfrom therelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained hereinorforanyerrorsoromissionsthatmayhavebeenmade.Thepublisherremainsneutralwithregard tojurisdictionalclaimsinpublishedmapsandinstitutionalaffiliations. ThisSpringerimprintispublishedbytheregisteredcompanySpringerNatureSingaporePteLtd. The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721, Singapore Contents 1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 Debates Over Myanmar’s China Policy . . . . . . . . . . . . . . . . . . . . 1 1.2 Justification for Using Neoclassical Realist Approach. . . . . . . . . . 4 1.3 Analytical Framework. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1.3.1 Independent Variable. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1.3.2 Intervening Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1.3.3 Dependent Variable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1.3.4 Causal Chain of the ‘Strategic Preference’ Model . . . . . . . 13 1.4 Main Content. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 2 Myanmar’s Contradictory Strategic Preference . . . . . . . . . . . . . . . . 21 2.1 Myanmar’s ‘Integration’ Strategic Preference . . . . . . . . . . . . . . . . 21 2.2 Myanmar’s ‘Isolation’ Strategic Preference . . . . . . . . . . . . . . . . . 23 2.3 Roots of Myanmar’s Opposing Strategic Preference . . . . . . . . . . . 24 2.3.1 Independent Foreign Policy . . . . . . . . . . . . . . . . . . . . . . . 24 2.3.2 National Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . 26 2.3.3 Geographical Position . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 2.3.4 Relative Political Isolation and Economic Integration. . . . . 32 2.4 Causes of the Significant Changes in Myanmar’s Strategic Preference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 3 Swung to China: Myanmar’s China Policy (1988–2004). . . . . . . . . . 37 3.1 Fierce Sino-US Political Competition. . . . . . . . . . . . . . . . . . . . . . 37 3.2 U.S. Threats and China’s Support . . . . . . . . . . . . . . . . . . . . . . . . 40 3.3 Stable Domestic Politics but Rising External Threats . . . . . . . . . . 41 3.4 Khin Nyunt’s Mixed Personality . . . . . . . . . . . . . . . . . . . . . . . . . 43 3.5 Myanmar’s Assessment of External Environments . . . . . . . . . . . . 45 v vi Contents 3.6 Engaged with China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 3.6.1 Frequent High-Level Visits . . . . . . . . . . . . . . . . . . . . . . . 47 3.6.2 Close Trade Cooperation . . . . . . . . . . . . . . . . . . . . . . . . . 49 3.6.3 Increasing Chinese Investment . . . . . . . . . . . . . . . . . . . . . 54 3.6.4 Deepened Defence Cooperation . . . . . . . . . . . . . . . . . . . . 55 3.7 Expanded Diplomatic Relations. . . . . . . . . . . . . . . . . . . . . . . . . . 61 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 4 Alienated from China: Myanmar’s China Policy (2005–2010) . . . . . 69 4.1 Moderate Sino-US Competition. . . . . . . . . . . . . . . . . . . . . . . . . . 69 4.2 Low-Level U.S. Threats and Rising Chinese Interference . . . . . . . 72 4.3 Domestic Turbulence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 4.4 Than Shwe: Conservative Leader. . . . . . . . . . . . . . . . . . . . . . . . . 76 4.5 Myanmar’s Assessment of External Environments . . . . . . . . . . . . 77 4.6 Alienated from China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 4.6.1 Declining Political Exchanges . . . . . . . . . . . . . . . . . . . . . 79 4.6.2 Increasing Economic Cooperation. . . . . . . . . . . . . . . . . . . 81 4.6.3 Less Defence Cooperation . . . . . . . . . . . . . . . . . . . . . . . . 87 4.7 Withdrew from the Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 5 Hedged Against China: Myanmar’s China Policy (2011–2015). . . . . 97 5.1 Increasing Sino-US Competition . . . . . . . . . . . . . . . . . . . . . . . . . 97 5.2 Rising Chinese Pressures and Multiple Benefits . . . . . . . . . . . . . . 102 5.3 Stable Politics but Rising Ethnic and Religious Tensions . . . . . . . 102 5.4 Thein Sein: Reformist Leader . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 5.5 Myanmar’s Assessment of External Environments . . . . . . . . . . . . 105 5.6 Hedged Against China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 5.6.1 Reduced Chinese Investments. . . . . . . . . . . . . . . . . . . . . . 106 5.6.2 Repaired Damaged Bilateral Ties . . . . . . . . . . . . . . . . . . . 110 5.6.3 Deteriorated Military Relations. . . . . . . . . . . . . . . . . . . . . 115 5.7 Balanced China’s Influence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 5.7.1 Expanded Economic Partnership. . . . . . . . . . . . . . . . . . . . 119 5.7.2 Diversified Foreign Policy . . . . . . . . . . . . . . . . . . . . . . . . 123 5.7.3 Strengthened Defence Cooperation . . . . . . . . . . . . . . . . . . 126 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129 6 Approached to China: Myanmar’s China Policy (2016–2020) . . . . . 135 6.1 Rising Tensions in SCS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135 6.2 U.S. Criticism and China’s Assistance. . . . . . . . . . . . . . . . . . . . . 137 6.3 Increasing Domestic Challenges . . . . . . . . . . . . . . . . . . . . . . . . . 138 6.4 Aung San Suu Kyi: Democratic Leader . . . . . . . . . . . . . . . . . . . . 140 6.5 Min Aung Hlaing: Conservative Leader. . . . . . . . . . . . . . . . . . . . 141 6.6 Myanmar’s Assessment of External Environments . . . . . . . . . . . . 142 Contents vii 6.7 Approached to China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144 6.7.1 Revived Close Bilateral Economic Relations. . . . . . . . . . . 144 6.7.2 Properly Handled the Myitsone Dam Conundrum . . . . . . . 146 6.7.3 Built Myanmar-China Community with a Shared Future. . . 151 6.7.4 Sought China’s Assistance to Address Rohingya Crisis . . . 153 6.7.5 Cooperated with China on Ethnic Issue. . . . . . . . . . . . . . . 155 6.8 Continued to Counterbalance China. . . . . . . . . . . . . . . . . . . . . . . 158 6.8.1 Active Neighbourhood Diplomacy and Multilateralism . . . 158 6.8.2 Promoted Regional Economic Integration . . . . . . . . . . . . . 163 6.8.3 Enhanced Military Capability . . . . . . . . . . . . . . . . . . . . . . 164 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 Conclusions ... .... .... .... ..... .... .... .... .... .... ..... .... 175 About the Author Dr. Nian Peng is the Deputy Director and Associate FellowoftheResearch Centre forMaritimeSilk Road, National Institute for South China Sea Studies (NISCSS), Haikou, PRC. He holds a Ph.D. in Government and International Studies at Hong Kong BaptistUniversity.Hismainresearchinterestsareinthe areas of China-Southeast (South) Asia relations, BRI, maritime security of the Indo-Pacific. He authored the book“LengZhanHouYinMianGuanXiYanJiu冷战 后印缅关系研究” [A Study on Indo-Myanmar Relations after the Cold-War] (Beijing: Shi Shi Chu Ban She [Current Affairs Press], 2017). His refereed articles have been notably published in Asian Affairs, Dong Nan Ya Yan Jiu 东南亚研究 [Southeast Asian Studies], Nan Ya Yan Jiu 南亚研究 [South Asian Studies],NanYaYanJiuJiKan南亚研究季刊[South Asian Studies Quarterly]. He also contributes his perspectives to various local and international media outletssuchasAsiaCentre(France),EastAsianForum (Australia), Lian He Zao Bao 联合早报 (Singapore), Zhong Guo Ping Lun Xin Wen 中国评论新闻 (China Review News Agency, Hong Kong), CGTN and Global Times (China). He can be contacted via email: [email protected]. ix Abbreviations AA Arakan Army ACD Asia Cooperation Dialogue ACTI ASEAN Connectivity for Trade and Investment AIIB Asian Infrastructure Investment Bank APEC Asia-Pacific Economic Cooperation ARSA Arakan Rohingya Salvation Army ASEAN Association of Southeast Asian Nations BCIM-EC Bangladesh–China–India–Myanmar Economic Corridor BCP Burma Communist Party BGF Border Guard Forces BIMSTEC Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation BOT Build–Operate–Transfer BRI Belt and Road Initiative BRICS Brazil, Russia, India, China and South Africa CICA Conference on Interaction and Confidence-Building Measures in Asia CITIC China International Trust and Investment Corporation CMC Central Military Commission CMEC China–Myanmar Economic Corridor CNPC China National Petroleum Corporation COC Code of Conduct in the SCS CORPAT India–Myanmar Coordinated Patrol Exercise COVID-19 Coronavirus Disease 2019 CPIC China Power Investment Corporation CPPCC Chinese People’s Political Consultative Conference CREC China Railway Engineering Corporation DDSI Directorate of Defence Services Intelligence DOC Declaration on the Conduct of Parties in the SCS E3 Expanded Economic Engagement xi xii Abbreviations ESIA Environmental and Social Impact Assessment EU European Union FDI Foreign Direct Investment FIL Foreign Investment Law FONOPs Freedom of Navigation Operations GMS Greater Mekong Subregion Cooperation GSP Generalized System of Preferences ICJ International Court of Justice ICOE Independent Commission of Enquiry IMBAX India-Myanmar Bilateral Army Exercise IMF International Monetary Fund IMNEX India-Myanmar Naval Exercise IR International Relations JICA Japan International Cooperation Agency KDNG Kachin Development Networking Group KIA Kachin Independence Army KNLA Karen National Liberation Army KNU Karen National Union KOGAS Korea Gas Corp LMI Lower Mekong Initiative MEIC Myanmar Export and Import Corporation MFTB Myanmar Foreign Trade Bank MICC Myanmar International Conference Center MNDAA Myanmar National Democracy Alliance Army MOGE Myanmar Oil and Gas Enterprise MOU Memorandum of Understanding NAM Non-Alignment Movement NCA National Ceasefire Agreement NDF National Democratic Force NGO Non-governmental Organization NLD National League for Democracy NPCSC National People’s Congress Standing Committee NRPC National Reconciliation and Peace Center NUP National Unity Party ODA Official Development Assistance ONGC India’s Oil and Natural Gas Corp PCA Permanent Court of Arbitration PLA People’s Liberation Army QUAD Quadrilateral Security Dialogue RCEP Regional Comprehensive Economic Partnership RNDP Rakhine Nationalities Development Party SCS South China Sea SLORC State Law and Order Restoration Council SNDP Shan Nationalities Democratic Party SPDC State Peace and Development Council