MYANMAR-CHINA RELATIONS (2003-2011) BY MR. THU REIN SAW HTUT NAING A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS (ASIA PACIFIC STUDIES) THAMMASAT INSTITUTE OF AREA STUDIES THAMMASAT UNIVERSITY ACADEMIC YEAR 2018 COPY RIGHT OF THAMMASAT UNIVERSITY 1 Ref. code: 25616066090074HMI MYANMAR-CHINA RELATIONS (2003-2011) BY MR. THU REIN SAW HTUT NAING A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS (ASIA PACIFIC STUDIES) THAMMASAT INSTITUTE OF AREA STUDIES THAMMASAT UNIVERSITY ACADEMIC YEAR 2018 COPY RIGHT OF THAMMASAT UNIVERSITY Ref. code: 25616066090074HMI THAMMASAT UNIVERSITY THAMMASAT INSTITUTE OF AREA STUDIES THESIS BY MR. THU REIN SAW HTUT NAING ENTITLED MYANMAR-CHINA RELATIONS (2003-2011) was approved as partial fulfillment of the requirements for the degree of Master of Arts (Asia Pacific Studies) on …………………………………………………… Chairman _________________________________________ (Lecturer Takashi Tsukamoto, Ph.D.) Member and Advisor _________________________________________ (Assistant Professor M.L. Pinitbhand Paribatra, Ph.D.) Member _________________________________________ (Assistant Professor Pisanu Sunthraraks, Ph.D.) Director _________________________________________ (Associate Professor Suphat Suphachalasai, Ph.D.) Ref. code: 25616066090074HMI (1) Thesis Title MYANMAR-CHINA RELATIONS (2003-2011) Author Mr. Thu Rein Saw Htut Naing Degree Master of Arts (Asia-Pacific Studies) Major Field/Faculty/University Master of Arts (Asia-Pacific Studies) Thammasat Institute of Area Studies Thammasat University Thesis Advisor Assistant Professor M.L. Pinitbhand Paribatra, Ph.D.) Academic Year 2018 ABSTRACT Myanmar was under military regime after a coup in 1988 until 2011 and the United States led western countries imposed economic sanctions on Myanmar for human rights violation and non-democratization within the country-the toughest period was during 2003 to 2011. The pragmatic approach to China which became rising superpower after its economic reform in the 1980s was the right option for Myanmar to counter the US-led international pressure. The purpose of this study is to examine how Myanmar benefited from China during the international pressure especially the sanction period. The research question for this study, to be precise, is “How has the relationship with China during 2003 to 2011 benefited Myanmar's national interest amidst the United States' pressures and economic sanctions?”. It can be clearly seen that China was rising to become superpower and boost in their economy-finally became the second largest economy in the world after the United States in 2010; with the long-standing friendship “Pauk-Phaw” relationship between Myanmar and China and eventually reached the strategic partner in 2011, Myanmar’s pragmatic approach to China in terms of political as well as economic where all doors are closed from the western world. In order to achieve the findings of this study, the thorough examinations will be made upon all ties between Myanmar and China and the hedging theory, specifically Myanmar’s binding-engagement to China bilaterally and through regional fora, has to be carried out. The research methodology will be documentary analysis-study through the works of well-known 1 Ref. code: 25616066090074HMI (2) scholars as well as the primary resources like the leaders' speeches and studying the bilateral engagements such as bilateral agreements. The explanation of theories tested in this study will be helpful to prove Myanmar's approach to China amidst US- led international pressures. The possible outcomes of this study will probably confirm the hypothesis of economic pragmatism and binding-engagement of Myanmar towards China to achieve certain political and economic benefits while countering the US-led international pressures and economic sanctions. In the case of Myanmar-China relations-the economic sanctions on authoritarian states by the western democratic states and survival of regimes through these sanctions-the country played both sides with the neighbouring superpower to counter international pressures. Keywords: Myanmar, China, hedging, economic pragmatism, binding-engagement 2 Ref. code: 25616066090074HMI (3) ACKNOWLEDGEMENTS The journey to the Master of Arts in Asia Pacific Studies (MAPS) was full of challenges and obstacles. So, please allow me to express sincere thanks to the ones who gave guidance and support to reach the finish line of this marathon. First and foremost, I would like to express my deepest gratitude to my late father who always supports my enthusiasm on doing further study and passed away during my study and my mother for their kind support. The generous offer of scholarship by the Government of Thailand (Thailand International Cooperation Agency - TICA) and the kind permission of my government and the Ministry of Foreign Affairs of Myanmar to study at the prestigious Thammasat University in Thailand must put on the top of the list of appreciation. From the beginning to the end of my thesis is all because of my respected and beloved thesis supervisor Assistant Professor Dr. M.L. Pinitbhand Paribatra. My utmost gratitude goes to his kind guidance and support. And, I would like to extend my deepest gratitude to the thesis committee, namely Dr. Takashi Tsukamoto (Chair) and Assistant Professor Dr. Pisanu Sunthraraks (Member) for their useful comments and feedback which made my thesis become the useful literature in this field of study. Without the support of Thammasat Institute of Area Studies (TIARA) Director Associate Professor Dr. Suphat Suphachalasai, MAPS Programme Manager Ms. Joy Thanyawee Chuanchuen, Programme Coordinator Mr. Mohammad Zaidul Anwar Haji Mohamad Kasim, Programme Officers Mr. Nathan Daniel V. Sison and Ms. Mook Kornchanok Nushkasem, the faculty, the Academic Support Unit (ASU) and Programme staff, the completion of my study and thesis will not be happened. Taking this opportunity, please allow me to express my sincere thanks to all of you for rendering guidance, help and support. Last but not least, my sincere appreciation and thanks also goes to my MAPS classmates who shared best moments of my life, Thammasat University Myanmar Community who cheered me up for homesickness and my colleagues from the capital who shared the burden of my works during throughout my study. Mr. Thu Rein Saw Htut Naing 3 Ref. code: 25616066090074HMI (4) TABLE OF CONTENTS Page ABSTRACT (1) ACKNOWLEDGEMENTS (3) LIST OF FIGURES (11) LIST OF ABBREVIATIONS (12) CHAPTER 1 INTRODUCTION 1 1.1 Introduction 1 1.2 Research question 3 1.3 Theoretical framework 3 1.4 Literature review 8 1.4.1 Introduction 8 1.4.2 Precursor to Myanmar, China and US relations before 2003 9 1.4.3 Myanmar’s leaning towards China 11 1.4.4 Myanmar’s foreign standing between China and US 15 1.4.5 Security, Economic and multilateral relations 17 1.4.5.1 Security collaboration between Myanmar and China 17 1.4.5.2 Myanmar-China’s economic relations 17 1.4.5.3 Myanmar-China’s relations in multilateral level 18 1.4.6 Conclusion 19 1.5 Methodology 20 1.6 Chapter organization 21 4 Ref. code: 25616066090074HMI (5) CHAPTER 2 HISTORICAL DEVELOPMENT OF MYANMAR-CHINA RELATIONS 23 (1948-2003) 2.1 Introduction 23 2.2 Before 1948: Bilateral Relations in Early History 25 2.2.1 Relations in the time of imperial age 26 2.2.2 Relations during colonial era and the Second World War 26 2.3 1948-1962: Relations between Democratic Myanmar and 27 Communist China 2.3.1 Adoption of Myanmar’s foreign policy 28 2.3.2 KMT invasion 29 2.3.3 Conclusion of boundary agreement 29 2.4 1962-1988: Socialist Myanmar and China’s Economic Reform 33 2.4.1 Myanmar’s communist parties and Chinese Communist Party 34 2.4.2 The anti-Chinese riot in Myanmar (1967) 34 2.4.3 China’s development assistance 35 2.5 1988-2003: Military Government’s Relations with Rising China 36 2.5.1 8888 Uprising 37 2.5.2 1990 General Elections and National Convention 37 2.5.3 Myanmar’s peace process 38 2.6 Conclusion 40 CHAPTER 3 BILATERAL RELATIONS BETWEEN MYANMAR AND CHINA (2003-2011) 43 3.1 Introduction 43 3.2 Bilateral relations from 2003 to 2008 44 3.2.1 Debayin incident and US’s economic sanctions 44 3.2.2 Myanmar’s roadmap to democracy 45 3.2.3 Saffron Revolution 46 3.2.4 Economic relations with China 46 3.2.4.1 Chinese investment 47 5 Ref. code: 25616066090074HMI (6) 3.2.4.2 Military contractors 47 3.3 Bilateral Relations from 2008 to 2011 48 3.3.1 Cyclone Nargis 49 3.3.2 2010 General Elections and transition to democracy 50 3.3.3 Strategic partnership agreement 51 3.3.4 Suspension of Myitsone dam and its aftermath 51 3.3.5 Anti-Chinese sentiment in Myanmar 52 3.4 China’s Trade and FDI with Myanmar 53 3.5 China’s involvement in the present-day peace process of Myanmar 57 3.6 Myanmar’s Relations with Yunnan Province 58 3.7 Relations with Regional Powers 58 3.7.1 Relations with India 59 3.7.2 Relations with Japan 60 3.7.3 Relations with the European Union (EU) 61 3.8 Conclusion 62 CHAPTER 4 MYANMAR AND CHINA RELATIONS AT MULTILATERAL LEVEL 65 (2003-2011) 4.1 Introduction 65 4.2 United Nations 66 4.2.1 UN, its objectives and functions 66 4.2.2 China and the United Nations 67 4.2.2.1 Historical background 67 4.2.2.2 Positions and priorities 69 4.2.3 Myanmar and the United Nations 70 4.2.3.1 Historical background 70 4.2.3.2 Positions and Priorities 73 4.2.4 Cooperation among China and Myanmar at the United Nations 74 4.2.4.1 UNSC’s draft resolution on the situation in Myanmar (2007) 75 6 Ref. code: 25616066090074HMI