Trade between Myanmar and China has reached USD 1.337 billion in the first two months of the fiscal year and the two countries deepen their trade partnership.

The data, which Eleven Media Group obtained from the Ministry of Commerce, shows USD 551 million in imports and USD 785 million in exports to China. The surging trade comes as China continues to develop the so-called China-Myanmar Economic Corridor, which calls for new border trade zones, highway and railway projects and other infrastructure primarily in Myanmar’s north. A recent visit from Chinese president Xi Jinping ended in the signing of 33 new trade agreements. China is a main purchaser of Myanmar agricultural goods, especially rice, as well as jade, ore and lumber. The China-Myanmar oil pipeline also carried more than 10 million tons of crude oil from Myanmar to China in 2019.

Some critics worry about China’s increasing economic leverage over its smaller, weaker neighbor. Ethnic organizations have also expressed concerns about Chinese political influence on Myanmar leaders. China has certainly shown a desire for stability in northern Myanmar. After last year’s outbreak of violence in Shan State endangered cross-border trade, Chinese diplomats met with parties on both sides of the conflict. China does have an interest in satisfying ethnic minority groups in addition to the Myanmar government, as it conducts unknown, but certainly high levels of trade with armed ethnic organizations along its border.

As China expands its Myanmar presence, other Asian countries scramble to catch up. South Korea, Japan and Thailand have also worked to establish their own investments around Yangon and in the south.