Xi Jinping's First Overseas Visit Country Myanmar Strengthens Energy Ties with China

[Image source=AP Yonhap News]

[Asia Economy Beijing=Special Correspondent Sunmi Park] Chinese President Xi Jinping will make a state visit to Myanmar on the 17th. President Xi chose Myanmar as the destination for his first overseas state visit this year.

On the 17th, Global Times reported that the streets of Myanmar are filled with banners welcoming President Xi's visit. It was reported that the people of Myanmar are showing a welcoming stance toward China's "Belt and Road" initiative, which is closely related to Myanmar's economy. Some people even show great interest in China and President Xi by reading books related to him.

In addition, it was explained that in Yangon, Myanmar's largest city, signs of active investment by Chinese capital can be seen everywhere, indicating that the economic relationship between China and Myanmar is quite close.

Global Times emphasized the need to pay particular attention to the energy ties between China and Myanmar.

Currently, Myanmar and China are jointly operating crude oil and gas pipeline projects, with Myanmar and Chinese companies each holding half of the shares. The 793 km long natural gas pipeline, which began operation in 2013, transported 24 billion cubic meters of gas to China by last year. The crude oil pipeline, which has been operational since 2017, has transported 25 million tons of crude oil so far.

Li Zelin, president of the joint crude oil and gas pipeline project between China and Myanmar, explained, "The energy joint venture has diversified China's energy import sources and had a positive effect on revitalizing Myanmar's regional economy." He added, "Myanmar has substantial energy reserves, and the joint venture with China is helping improve Myanmar's natural gas extraction levels." Li said, "The demand for oil and gas in southwestern China is rapidly increasing, and a significant increase in energy imports through this pipeline is expected." He added, "As of 2018, natural gas accounted for 40% and crude oil 70% of China's total energy demand. Imports through this energy pipeline will account for about 10% of China's total imports."

Meanwhile, trade volume between China and Myanmar is also rapidly increasing. According to the Chinese Ministry of Commerce, the trade volume between the two countries from January to September 2019 was $13.54 billion, a 17.9% increase compared to the same period in 2018. The newspaper reported that the two countries are seeking to expand cooperation in various fields beyond crude oil and gas, including solar energy, railways, and agricultural products.

This content was produced with the assistance of AI translation services.