Kan Pike Tee Free Trade Zone Project

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The Kan Pike Tee Free Trade Zone Project, also known as the Kanpiketi Business Park, is a major initiative in Myanmar linked to China's Belt and Road Initiative (BRI). Here's a more detailed overview:




Background and Development

  • Location and Scope: Situated in Kachin state, the project includes a development zone in Myitkyina and a border trade post in Kan Pike Tee, covering nearly 5,000 acres​​.
  • Approval and Control: Approved by the Kachin State parliament, the project encompasses about 70 acres in Kanpiketi, controlled by the NDAK militia, allies of the Myanmar military​​.



Involvement and Investment

  • Joint Venture: Developed by Myanmar Heng Ya Investment Development Company Ltd (a joint venture between Myanmar's Kampaiti Development Company Ltd and China's Yunnan Tengying Trading Company Ltd) at an estimated US$22.4 million​​.
  • Stake Distribution: The Chinese company holds a 70% stake, with the remaining 30% held by the Myanmar company​​.
  • Local Impact: Plans indicate potential displacement of local residents, although exact figures are unknown​​.

Strategic and Economic Importance

  • Part of CMEC: The business park is among three cross-border economic zones under the China-Myanmar Economic Corridor, extending from China’s Yunnan Province to Mandalay, Yangon, and the Kyaukphyu SEZ in Rakhine State​​.
  • Bilateral Agreements: Stemming from a 15-point memorandum of understanding signed in 2018 following State Counselor Daw Aung San Suu Kyi’s visit to Beijing in 2017​​.

Benefits and Challenges

  • Expected to foster economic growth and job creation, the project faces challenges like displacement of locals, environmental concerns, and complex regional political and ethnic dynamics.

Potential Barriers and Threats

  • Ethnic and Political Dynamics: The NDAK militia's involvement and military influence in the region highlight potential challenges to implementation and stability.
  • Economic Dependence and Transparency: Substantial Chinese investment raises issues of economic dependence and the need for transparent development and operations.



Based on the current political situation in Northern Myanmar and its impact on the China-Myanmar Economic Corridor (CMEC), several scenarios can be hypothesized:


Scenario 1: Intensified Military Conflict

  • Current Situation: The Three Brotherhood Alliance, comprising MNDAA, TNLA, and AA, launched coordinated attacks against Myanmar military outposts in northern Shan State, indicating a full-scale entry into the conflict​​​​​​.
  • Hypothetical Impact: Continued military offensives could lead to further destabilization, making it difficult to maintain or advance the CMEC. Increased conflict could disrupt key infrastructure projects and deter foreign investment, especially in unstable areas.

Scenario 2: China's Strategic Maneuvering

  • Current Situation: China, post-coup, has recalibrated its strategy, aligning more closely with Myanmar's military while also engaging with ethnic armed organizations​​​​​​.
  • Hypothetical Impact: China might leverage its influence to mediate conflicts, aiming to stabilize regions critical to CMEC. However, this approach could lead to geopolitical tensions and accusations of siding with the military junta.

Scenario 3: Focused Development in Stable Regions

  • Current Situation: China has been focusing on implementing projects in Myanmar's geographical periphery, areas that are relatively stable or border China​​​​.
  • Hypothetical Impact: This selective development approach could lead to uneven economic growth, with peripheral areas experiencing development at the expense of conflict-ridden regions. However, it might ensure the continuity of key projects like Kyaukphyu SEZ and associated infrastructure.

Scenario 4: Long-term Political Uncertainty

  • Current Situation: Myanmar's political future remains uncertain, with various forces opposing military rule, leading to a potential stalemate and continued instability​​.
  • Hypothetical Impact: Prolonged instability could result in delayed or suspended CMEC projects. This scenario might lead to economic collapse in certain regions, exacerbating humanitarian crises and potentially causing regional spillover effects.

Scenario 5: China's Balancing Act

  • Current Situation: China appears to be maintaining relations with both the military and ethnic armed organizations, aiming to be an indispensable player in Myanmar's future​​​​.
  • Hypothetical Impact: China's balancing act could place it in a position to influence Myanmar's political and economic direction post-conflict. This could result in China having significant sway over the country's economic policies and development trajectory, potentially at the expense of Myanmar's sovereignty and self-determination.


These scenarios depict a complex and fluid situation where the political and military dynamics within Myanmar directly impact the progress and focus of the CMEC. China's strategic interests and approach to dealing with different stakeholders in Myanmar will be critical in shaping the future of the CMEC and the broader economic landscape of the region. However, the ongoing conflict and political instability present significant challenges to the successful implementation and operation of the CMEC.



In conclusion, the Kan Pike Tee Free Trade Zone Project marks a crucial step in Myanmar's economic progression and regional integration, contingent on navigating local and international political landscapes and addressing displacement and environmental sustainability concerns.


"China’s New Silk Road plan: What’s in it for Myanmar?" on Frontier Myanmar.


Reference Link :Northern offensive brings ‘new energy’ to Myanmar’s anti-coup resistance | Conflict News | Al Jazeera


https://thediplomat.com/2023/02/the-china-myanmar-economic-corridor-2-years-after-the-coup/


https://thediplomat.com/2023/02/the-china-myanmar-economic-corridor-2-years-after-the-coup/


https://thediplomat.com/2023/02/the-china-myanmar-economic-corridor-2-years-after-the-coup/#:~:text=Myanmar%E2%80%99s%20political%20future%20is%20uncertain,side%20enjoys%20any%20lasting%20victories

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