Chinese firms in Myanmar attempt to fix image problem
| Yangon, Myanmar
Facing unexpected turbulence over its investments in Myanmar, China is employing a strategy more commonly used by Western corporations: The 鈥渃orporate social responsibility鈥 campaign.
Hence last week鈥檚 rollout of new guidelines to be followed by Chinese firms doing business here in Myanmar (Burma), a country that until recently had been viewed by many as a Chinese client state.聽
The move speaks to China鈥檚 image problem not only in Myanmar, but in many of the Asian and African countries where it operates copper mines, dams, and oil fields amid complaints of safety violations and environmental damage.
Gao Mingbo, the social media-savvy head of the political section at the Chinese Embassy here in Yangon, sees the Myanmar effort 鈥撀爓hich is now a staple of US corporate strategy in the developing world 鈥 as a 鈥減ilot鈥 exercise for how Chinese companies should be doing business abroad.聽
But China鈥檚 troubles in Myanmar are also a cautionary note for other countries looking for business in Myanmar, where people are now far less afraid to protest investments that may impinge on their rights. Protests over land rights and environmental damage associated with foreign investments are now common.
Myanmar鈥檚 foreign investment commission is 鈥渁ttaching much more importance to the environmental and social issues than before,鈥 says Edwin Vanderbruggen, a Yangon-based attorney at VDB-Loi. 鈥淚n that context investors from any country, including China, do well to position themselves stronger as responsible corporate citizens.鈥
The move comes just as China prepares to switch on newly-built pipelines that will carry oil and natural gas across Myanmar, from the Bay of Bengal to China鈥檚 Yunnan Province.
The pipelines drew protests from increasingly vocal Myanmar civil society groups over related land-grabs. It was similar to the controversy China鈥檚 resource projects have caused elsewhere, but a surprise to聽Beijing, which聽some say had grown complacent in its relations with its neighbor to the southwest.
鈥淚t鈥檚 all about perceptions,鈥 says Mr. Gao. He says that Chinese companies are already doing much to help local communities affected by their investments, but that companies have done a poor job promoting their good works.
It鈥檚 been a hard lesson, he says. 鈥淚t鈥檚 not responsible to accuse the Chinese of doing nothing to help the local communities 鈥 that鈥檚 not fair,鈥 says.
Myanmar鈥檚 rapid transition from military rule to democracy has exposed just how complicated Sino-Myanmar ties really are. Myanmar has been balancing its historic reliance on China by opening up to the world, and expanding ties with the United States and Europe.
And the past two years have seen a spate of high-profile bumps in the economic relationship, including President Thein Sein鈥檚 decision to cancel a controversial, long-planned Chinese dam-building project in 2011 and a joint Chinese-Myanmar copper-mining project in the northwestern part of the country.
Now, the Chinese government is realizing that it needs to shore up its image. Beijing鈥檚 sudden interest in promoting corporate social responsibility and showcasing its assistance efforts are part of that tactical effort.
At a press event last week, the Chinese embassy and the Chinese-Myanmar Enterprises Association promised 鈥渕oral self discipline to attain the trust of Myanmar society and people,鈥 a focus on job creation, and greater engagement with local communities.
What it will amount to remains unclear. Regardless, China鈥檚 effort shows the importance that Beijing places on its Myanmar relations and investments, amid increasing competition from the West. The oil pipeline, for instance, will allow China to bypass the Straits of Malacca 鈥 a potential chokepoint in a military conflict 鈥 when importing fuel from Africa and the Middle East.