ARI Working Paper Series

One of the most important features of the Sino-Myanmar relationship since 1988 has been the growing bilateral economic relations in the areas of trade, aid or development assistance, and investment. Since 1988, China has become one of the most important sources of trade and development assistance for Myanmar, and China is using the trade and aid as a diplomatic instrument to pursue its strategic interests in Myanmar. Chinese investment in Myanmar, though small in volume and value, is heavily concentrated in a few strategic sectors, such as oil and gas. This paper examines Sino-Myanmar relations in terms of trade, investment and aid and provides detailed figures for these relations since 1998. It concludes that the growing geopolitical significance of Myanmar in Asia will further ensure China’s economic engagement with Myanmar.