BILATERAL trade between Myanmar and China will increase this year, despite the recession that has lowered trade volumes worldwide, a senior Chinese embassy official has told The Myanmar Times.

In an exclusive interview, Mr Tang Hai, economic and commercial counsellor at China’s embassy in Yangon, said overall trade volume this year between Myanmar and China would increase, even though there was some decline in first quarter of 2009, caused by the international economic downturn.

“Due to the cooperation between us, overall trade volume in 2009 will increase slightly,” said Mr Tang Hai.

China, Myanmar’s second largest trade partner after Thailand, imports fisheries and agricultural products, minerals, teak and precious stones, while it exports to Myanmar electronics, machinery, fertiliser, clothing and medicines.

Trade volume between the two countries reached US$2.6 billion in 2008, up from less than $1 billion in 2003.

“We attach great importance to trade between China and Myanmar. And if we continue to work together trade volume will not decline,” he said, adding that China highly values its relationship with Myanmar.

Because of the special relationship between the two countries, economic cooperation between China and Myanmar has increased, he said.

The two countries share a border more than 2000 kilometres long.

“We always support Myanmar both politically and economically in the face of the sanctions imposed by western countries.

“We also support Myanmar in international meetings,” said Mr Tang.
He said China was not concerned about international competition in the Myanmar market as China had advanced technologies and its products were priced lower than those of other countries.

Mr Tang said Chinese investment in Myanmar had risen during the past few years, and discussions with Myanmar were proceeding on hydropower, oil and gas, mining construction and agriculture.

According to Myanmar government figures, China is the fourth-biggest foreign direct investor in Myanmar. Thailand is first, while the United Kingdom ranks second and Singapore is third.

However, Mr Tan said he believed China would advance to a higher place on the FDI list. He said China had invested a total of $1.33 billion, mainly in the mining sector, hydropower, and oil and gas as of March 31, 2009.