China becomes Myanmar’s top investor

Global investors are increasingly turning away from Myanmar, which has been devastated by civil war. Against this backdrop, China has taken the lead as the country’s largest foreign investor and trading partner. This has strengthened Beijing’s position in Myanmar’s economy.

The Japan External Trade Organization (JETRO) reported the development in its Myanmar Trade and Investment Yearbook.

In the fiscal year 2025, which ended in March this year, Myanmar approved $472.6 million in foreign direct investment (FDI). This was down 31.5 percent, or about one third, from the previous year. However, investment flows from China increased 2.1 times to $201.1 million. This means China now accounts for 42.6 percent of Myanmar’s total approved foreign direct investment.

Citing data from the Directorate of Investment and Company Administration, the report said Singapore, which had long held the top position due to sustained investment, dropped to second place with $155 million in investment. Hong Kong contributed $54.9 million.

A large share of the capital from China and Hong Kong went into light industries, particularly garment and footwear factories.

During the period under review, Myanmar’s exports to China increased 24.7 percent to $4.312 billion, while imports rose 42.6 percent to $5.952 billion. This means China now accounts for more than one third, or 35 percent, of Myanmar’s total trade, up from 27.8 percent in the previous year.

The report said border conflicts have shifted trade to alternative routes. However, the figures do not include border trade with China through areas in northern Shan State controlled by the Brotherhood Alliance.

A documentary series broadcast this week by China’s state broadcaster CCTV highlighted scam syndicates operating in four northern border areas of Myanmar. While scam empires in the Kokang region have long made international headlines, the documentary focused primarily on three less familiar hubs: Wa, Mongla and Muse. It also highlighted Beijing’s “success” in cracking down on these operations.

The documentary identified the semi-autonomous Wa region as the birthplace of the regional scam economy. At the height of the business, 265 scam centers were operating in Mong Pawk alone, involving around 60,000 people.

This week, Naypyidaw announced that 87 scammers had been arrested in the remote Hopong Valley in an autonomous region of southern Shan State. Among them were 75 Chinese nationals and 12 Myanmar nationals. They had been operating from temporary huts equipped with dozens of computers, more than 500 phones and Starlink connections.