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Chinese Foreign Direct Investment in Myanmar (Case Study) 2012

Chinese Foreign Direct Investment in Myanmar (Case Study) 2012

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08/26/2013

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Lund University Spring 2012Graduate School Supervisor: Joshka WesselsDepartment of Political Science
Chinese Foreign Direct Investment inMyanmar:
Remarkable Trends and Multilayered Motivations
Travis Mitchell
 
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Abstract
Following the national responsibility theory in the school of international societywhich argues that national
interest drives a state’s foreign policy, this thesis first attemptsto deconstruct China’s foreign direct investment
(FDI) in Myanmar since 2004 bypicking apart and manipulating financial data in order to determine the resulting trendsand developments.
It then analyzes how Myanmar’s abundant natural resources couldhelp alleviate China’s rising energy demands and how Chinese FDI can enhance China’s
political security, reduce energy costs, diversify its imports, and mitigate mineralshortages. The United States
marked presence in the region due to a transformation inforeign policy in the Obama administration, as well as the 2011 dissolution of militarylaw in Myanmar, means that the motivation for Chinese FDI no longer solely revolvesaround the acquisition of natural resources and the previous lack of internationalcompetitors in the country. Nevertheless, I argue that
China’s national economic interest
will continue to serve as the primary incentive to invest billions of dollars into Myanmar,though political interest is beginning to factor
more into China’s motivations
.
Keywords
: China, Myanmar, foreign direct investment, natural resources, nationalinterestWord Count: 21,373
 
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