Chinese premier Li Keqiang and Myanmar leader Aung San Suu Kyi on Thursday agreed on boosting energy cooperation and to look for a resolution that suits both countries to a suspended Chinese-funded hydropower project in northern Myanmar, Chinese Vice Foreign Minister Liu Zhenmin said on Thursday.Myanmar’s State Counsellor Suu Kyi’s five-day official visit to China began on Wednesday. At
the Great Hall of the People in Beijing on Thursday, Suu Kyi and Chinese Premier Li held talks on wide ranging issues of mutual interest to both neighbours. The two countries signed a deal to build a strategic bridge near their border. Tensions along the Myanmar side of the Chinese border has aggravated over the recent past as the Myanmar government was besieged by demands of greater autonomy from several ethnic groups. China has repeatedly raised the issue of reconciliation to halt the civilian strife in Myanmar and called for a ceasefire between government troops and the rebel groups. Artillery shells exchanged between the two fighting sides in Myanmar had flown over the border more than a couple of times and landed inside China. These clashes in Myanmar have also pushed refugees into China. On Thursday, the Myanmar government said China has also agreed to build two hospitals in Myanmar’s two largest cities, Yangon and Mandalay. “Aung San Suu Kyi said that the Myanmar government has already set up an investigation committee to look for an appropriate resolution to the Myitsone dam issue,” Chinese Vice Foreign Minister Liu Zhenmin told reporters after talks.
“She also said that she is willing to look for a resolution that suits both sides’ interests via both sides’ energy administrations’ cooperation.”
China is Myanmar’s most important trade partner and one of its main sources of foreign direct investment.
Former Myanmar President Thein Sein angered China had suspended work on the hydropower dam in 2011.
Suu Kyi said Myanmar’s new government has decided to set up an investigation committee to find a solution to the $3.6 billion Myitsone dam project. The committee will report by Nov. 11.
The visit is Suu Kyi’s first major diplomatic overture as de facto leader, after a new government took power in April. Myanmar’s Parliament has passed a bill giving Suu Kyi a role similar to that of Prime Minister.
“Choosing China as the first country to visit outside ASEAN (Association of Southeast Asian Nations) after taking office as the State Counsellor shows the high importance you and the Myanmar government have attached to relations with China,” China’s Premier Li said to Suu Kyi during Thursday’s talks.
In April, Chinese state-controlled commodity trader Guangdong Zhenrong Energy Co won approval from the Myanmar government to build a long-planned $3 billion refinery in Myanmar in partnership with local parties including the energy ministry.
China has traditionally close ties with Myanmar, earlier called Burma.
China and Myanmar share major energy and transport projects and thriving trade ties.
The Myanmar-China natural gas pipeline, China’s fourth strategic energy supply channel, was completed in October 2013.
The pipeline is expected to send 12 billion cubic metres of natural gas annually to Myanmar and southwest China, which will reduce coal consumption by 30.72 million tonnes per year.
The project is billed as one of energy-hungry China’s most important strategic investments.
China National Petroleum Corp (CNPC), China’s top oil and gas producer, owns the pipelines.
It is part of the $2.5 billion Myanmar-China Oil and Gas Pipeline project, which also includes building a crude oil pipeline.
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