Burma’s Economic Revival Leaves China Struggling to Compete

China’s investment in Burma “plummeted” in 2013 to only US$20 million or 5 percent of the value invested in 2012, Chinese media reported.And last year’s figure was a mere 1 percent of the value of Chinese investment in Burma in the peak year of 2010, said China Radio International.The rules of the game in [Burma] have changed. In 2011, a civilian government came to power. China’s plummeting investment coincides with the announcement of the 2012 foreign investment law,” the radio said quoting theChina Business News newspaper.“As for ranking of foreign investors, China lost the leading position for the first time in four years and dropped to around 10th,” the paper reported.“The sharp contrast of China’s dropping investment in [Burma] and the rising total volume of FDI (foreign direct investment) is due to the failure of the Chinese companies to change their own game and catch up with developments [in Burma],” the radio station said in its report.It said there was a degree of inevitability about China losing its No.1 investor status with the ending of Western sanctions and a changing economic culture in Burma.“Chinese companies need to understand the situation, change their mindset, put themselves inMyanmar’s position, use their own advantages so as to re-enter the Myanmar market with competitiveness.”

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