by BRIAN MCCARTAN
Bangkok, Thailand (Mizzima) – Chinese vice-president Xi Jinping’s visit to Burma over the weekend reaffirmed ties and resulted in the granting of exclusive rights to build and operate a controversial oil pipeline. The Chinese leader was also given assurances that stability would be maintained on the border. However, relations between Beijing and Naypyidaw have not always been so cordial over the past year.
The visit to Burma was part of a four nation tour that also included Cambodia, South Korea and Japan. The significance of Xi’s role in the weekend visit was seen by analysts as diplomatically introducing the probably future Chinese president to Burma’s leaders. It may also have been a show of support for the generals after several months of strained relations between the two countries.
Xi Jinping is widely believed to be the frontrunner to succeed current president Hu Jintao in 2012. Xi is currently the highest ranking member of the Secretariat of the Communist Party of China and ranked sixth in the Politburo’s Standing Committee. Although Xi was not selected as vice-chairman of the important Central Military Commission in September, he is still believed to be in a strong position.
The most significant outcome of the meeting was Xi’s overseeing the signing of an agreement granting exclusive rights to the China National Petroleum Corporation (CNPC) to build and operate a crude oil pipeline. The 2,000 kilometer pipeline will extend from Burma’s western coast across much of the length of the country to China’s southwest Yunnan province and on to Chongqing. The pipeline operation will be run by CNPC-controlled South-East Asia Crude Oil Pipeline Ltd. which also received tax concessions and customs clearance rights to bring in construction materials as part of the deal.
Construction of the pipeline began in November and when completed is expected to carry an initial 12 million tons of crude oil a year. A crude oil port on the island of Kyaukpyu in Burma’s western Arakan State has been under construction by CNPC since in October. The port and the oil pipeline are part of an effort by China to avoid having to send tankers through the easily blocked Malacca Straits. In addition, a gas pipeline is planned to be built by CNPC to carry natural gas from the offshore Shwe gas field. The gas pipeline will pump 12 billion cubic units of gas per year to China when it comes online in 2012.
Burmese officials gave assurances to Xi that the junta would maintain security along the 771 kilometers of the pipeline that run through Burma. This is a contentious issue among human rights organizations which allege that the military’s efforts to secure the area will result in large-scale human rights abuses. Groups like environmental and human rights watchdog Earth Rights International say similar operations in the 1990’s to secure the route of the Yadana gas pipeline to Thailand caused widespread human rights violations.
Burma has become an increasing important source of natural resources for China, especially oil and gas. Beijing also sees Burma as essential to plans to develop its landlocked southwestern Yunnan province. To this end, China is actively promoting the construction of road networks and port facilities to make the transportation of goods through Burma for export.