As a former tributary state of the Middle Kingdom, Myanmar has long enjoyed a close relationship with China, but since the late eighties this has become more marked. The growing isolation of Myanmar – especially from and by the West – has served to increase its dependence on China for both trade and security, with the latter now by far its biggest trading partner as well as its largest source of inward investment. The country’s Chinese minority, which has grown considerably in recent years, has played a very important role in this growing economic alignment with China. There is also close military collaboration between the two countries, the only such instance of this in the region (with the partial exception of North Korea). With their long shared border, Myanmar is an important ally for China because it gives its landlocked south-west provinces vital access to the Indian Ocean for their exports while also providing a base for the Chinese navy to operate in the Indian Ocean. For a combination of historical and economic reasons – and because otherwise Myanmar would find itself even more isolated – China’s relationship with Myanmar is, in fact, more intimate than that with any other country in the region. [920]

Figure 25. East Asian attitudes towards China and the United States (% ‘favourable’) Nov 2005.

Figure 26. East Asian perceptions of bilateral relationship with China and the United States (% ‘good’) Nov 2005.

Figure 27. East Asia’s perceptions of Asia’s future power centre (%) Nov 2005.

Figure 28. East Asia’s perceptions of their closest economic partner in 5-10 years (%) Nov 2005.

For geographical reasons, the archipelagic countries of South-East Asia have traditionally enjoyed a more distant relationship with China than those like Myanmar and Vietnam that share the same land mass. [921] Furthermore, the ethnic, cultural and religious differences between China and countries like Malaysia and Indonesia are very pronounced. Malaysia, following its independence in 1957, viewed China with considerable suspicion because of its own large Chinese minority and the fact that the Maoist regime encouraged a guerrilla war, mainly based amongst the local Chinese, against the British and, after independence, against the newly installed Malay-dominated government. With China ’s rapid economic growth during the reform period, together with its turn away from promoting revolutionary change elsewhere, relations steadily improved. Although the two countries were in conflict over the Spratly Islands, the then Malaysian premier Mahathir Mohamed chose to pursue a policy of engagement with China, aware that his country could not win any naval clash. [922] He also played a critical role for more than a decade in encouraging China to become more involved in the region and with ASEAN in particular.

In the longer run any deepening relationship with China is likely to have an effect on the delicate racial balance in Malaysia between the Malay majority and the Chinese minority, who presently account for more than a quarter of the population. Not surprisingly, it is the Chinese minority who are primarily involved in trade with China, who fill the planes that fly between the two countries, and who benefit the most economically from the bilateral relationship. [923] As a result Malaysia, while seeking a closer relationship with China, is bound to remain at the same time somewhat ambivalent. (The problem of an economically powerful indigenous Chinese minority is by no means confined to Malaysia: a Chinese minority, though relatively smaller than that in Malaysia, also plays the dominant role in the private sectors of Thailand, Indonesia, Myanmar, Laos, Cambodia, Vietnam and the Philippines. [924])

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