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China's brazen Myanmar move
By Alan Boyd

SYDNEY - China has brazenly defied the United States' latest attempts to isolate the military leadership in Myanmar, as Beijing moves to reclaim the talks initiative with its own unique blend of coercion and economic leverage.

In the latest of a series of high-level exchanges since January, Beijing is hosting a visit by 32 top junta leaders this week that underscores China's unrivaled clout with the reclusive generals in Yangon. Ramming this message home, Beijing agreed on Saturday to advance a US$200 million loan for a power project near Myanmar's second city of Mandalay, and diplomats said China was discussing further military cooperation.

Although the visit is said to have been planned several months ago, there is little question it will be perceived as a rejoinder to Washington's decision late last month to impose tighter economic sanctions on the junta.

Drawing upon its leverage as Myanmar's leading trading partner, China has already denounced the sanctions and given a clear indication that it will not support efforts by the Western alliance to isolate the junta, economically or otherwise.

"The people of China are keen to develop the long-standing friendly neighborly and cooperative ties with Myanmar in the new century," Guo Boxiong, vice chairman of the Chinese Central Military Commission (CMC), said in a statement issued in Beijing that has been given wide coverage in the official media.

There is a strong military tone to the talks, with Myanmar sending General Maung Aye, No 2 in the ruling State Peace and Development Council (SPDC) and deputy head of the defense forces.

But the sanctions are undoubtedly the main talking point: Maung Aye is better known as chairman of the pivotal National Industrial Development Committee, as well as the National Agricultural and Economic Development Committee and the National Trade Committee, the agency responsible for cross-border trade.

Two other senior SPDC leaders with economic roles, Lieutenant-General Thura Shwe Mann and Secretary-Two Lieutenant-General Soe Win, are also in the delegation, supported by a phalanx of technocrats.

"I don't think there is any doubt Muang Aye is there with a very clear mandate of exploring how the impact of the sanctions can be softened," said a European diplomat. "However, let us not forget that China has its own interests, as a close neighbor and economic ally, in lessening the social risks one might expect to see once economic deprivation spreads."

Chinese military detachments along the border have reportedly been beefed up substantially since it first became apparent that Washington would take a harder line with Yangon, reflecting heightened security fears from a likely influx of economic migrants. China is already grappling with of a host of social ailments that were imported from Myanmar, ranging from trafficking in illicit narcotics to the spread of the AIDS virus and people-smuggling.

Commerce has slumped on the Thai and Chinese borders since the United States imposed an embargo on imports from Myanmar and froze some of its assets, leaving tens of thousands of traders with reduced incomes. Food riots have been reported in some areas. It is these threats, allied with a desire to undermine the influence of strategic rival India, that are believed to have largely shaped China's paradoxical response to the sanctions: while it may not like Washington's methods, it wants much the same result.

"Obviously it would be easy to dismiss the Chinese position as another churlish reaction to what would probably be termed a containment strategy directed from Washington. That ignores the bigger picture," said another diplomat. "Simply put, the Chinese want to have people in [Yangon] whom they can deal with, who aren't going to destabilize their neighborhood and attract lots of unwanted attention from western Europe and the US.

"So the bottom line is they will probably support a diplomatic solution like the one put forward by the Thais, incorporating a change of leadership if needed - as long as it is on their own terms," he said.

China has declined to intervene directly in Myanmar's political turmoil, which it contends is that country's "internal affair". Yet it has given qualified backing to a proposal by Thailand for a "roadmap" to democracy based on a multilateral forum of regional states and the various factions in Myanmar that would attempt to broker a durable settlement.

Beijing's policy toward detained opposition leader Aung San Suu Kyi, who is seen as the most likely leader of a democratic Myanmar, has been based on a strong dose of pragmatism. Wary of social instability, China is believed to have exerted pressure on the junta for her release, and has sought a more moderate response to political activism.

However, it might be a different matter if Suu Kyi were to establish a democratic government with an assertive foreign policy, which would probably be more sympathetic to the United States and its allies. The Chinese leadership will also be acutely aware of the personal bond that exists between the Aung Sans and longtime rival India, which gave the family a sanctuary after it was forced into exile by the SPDC's predecessors in the early 1960s.

"I don' t know what policies a Burma led by Aung San Suu Kyi would pursue toward China, but I'm quite confident she wouldn't choose to pursue a strategic partnership with an Asian dictatorship," influential US Senator John McCain said in a congressional address in June. (Burma is the old name for Myanmar, officially renamed by the junta in 1989.) "Democratic India would be a natural ally of a free Burma, and I believe New Delhi would be wise to help move Burma in that direction, rather than curry favor with the generals."

India's own posture toward Myanmar has in effect been dictated by the junta's pandering toward Chinese strategic interests, especially the access granted to communist forces at naval bases in the Andaman Sea. With its traditional trading routes under threat, Delhi has much to lose from a diplomatic settlement in Myanmar favoring China. In this sense it has found a ready ally in Suu Kyi, who would be the central figure in any negotiations.

Suu Kyi's National League for Democracy (NLD) has lashed out at the junta's interdependency with the Chinese military establishment. Since 1990, Myanmar has spent $3 billion on Chinese weapons, which have been used for the brutal suppression of dissent and to consolidate the SPDC's grip on power. The NLD has also bitterly condemned the Chinese infiltration into the Andaman Sea as a violation of Myanmar's sovereignty, and could be expected to move swiftly to curtail Beijing's sphere of influence if Suu Kyi formed a government.

"It stands to reason that the Chinese have much to lose from a political transition that would cut across their historic interests and introduce an element of political uncertainty. This gives them a big stake in any political settlement," said the European diplomat. "They know they can't afford to let the terms of the transition be dictated by the political opposition, the Western alliance, or indeed the Thais.

"What we are seeing is China, having accepted that the current situation is untenable, now beginning to take the lead in pursuing political talks so it can set the agenda for change," said the diplomat.

(Copyright 2003 Asia Times Online Co, Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)
 
Aug 21, 2003



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