CNI News
13 December 2025

China has been carrying out numerous investments and projects in neighboring Myanmar. This has raised questions among the public as to whether China is engaging Myanmar primarily for economic reasons or for strategic interests.

China–Myanmar relations have now reached their 75th anniversary, and China’s stance toward Myanmar has been welcomed by the State Security and Peace Commission. 

However, following the political and military changes that took place in Myanmar after February 1, 2021, military and political analysts point out that China has become deeply involved and is exerting growing influence.

As long as political and military instability persists within Myanmar, China–Myanmar economic cooperation cannot be effectively implemented. China views Myanmar not so much as an economic opportunity but more as a strategic one, according to economic analyst U Htay Aung Kyi, who spoke to CNI News.

Senior General Min Aung Hlaing seen during a visit to China

He said:“As long as fighting continues among armed groups inside Myanmar, China’s western gateway will not be able to open. Its economic activities won’t be able to operate. China’s western gateway must pass through northern Shan State, Sagaing, Magway, and then Rakhine. As long as internal fighting continues in Myanmar, that western gateway cannot be opened. Even though it cannot be opened, for China, the opportunity lies more in strategy than in economics.I don’t recall the exact figures for China’s total investment volume or the data right now, but what I do remember is this: if you compare China’s total overseas investment with the amount it has invested in Myanmar, the share in Myanmar is not very large. At present, China does have business and economic interests in Myanmar, but the main interest is strategic.To put it briefly and straight to the point, China wants a situation in which it can operate inside Myanmar. Only then can it move forward.”

At present, China is exerting pressure and mediating to halt the fighting between the Myanmar military and the Northern Alliance groups (MNDAA, AA, TNLA) in northern Shan State. 

At the same time, China is also pressuring for towns along the Myanmar–China border trade routes to be handed back to the Myanmar military.

Currently, Myanmar has no country to rely on other than China, and therefore finds itself in a situation where it must comply with whatever assistance China requests, according to China–Myanmar affairs analyst Dr. Hla Kyaw Zaw, who spoke to CNI News.

TNLA monitoring the China–Myanmar border

She said:“They have no choice but to comply. Who else do they have? The statistics released by Yunnan Province really surprised me. After Yunnan’s trade volume with Vietnam, Yunnan’s trade with Laos is only about one-tenth or one-fifth of the value of Yunnan’s trade with Myanmar.Yunnan’s economic relationship with Myanmar is not insignificant. Why? Because Myanmar relies only on China, whereas Vietnam and Laos can also trade with other countries. That’s why they pay attention to Yunnan in trade. For Myanmar, its lifeline is Yunnan alone. Maintaining good relations with Yunnan is essential. That’s why it appears that Myanmar has to grant whatever assistance China asks for. And that’s also why China knows that only when Myanmar is peaceful, stable, and when the people are calm, can its projects succeed.”

At present, intense fighting between the Myanmar military and armed groups across the country has caused China–Myanmar border trade to come to a halt, and China’s projects and investments inside Myanmar have also been suspended.

As a result, during a meeting with Senior General Min Aung Hlaing in Russia in May 2025, Chinese President Xi Jinping stated that measures must be taken to ensure the safety and security of Chinese companies and employees in Myanmar, as well as Chinese projects and investments.