The Burma Road has a famed history as the transport artery that helped support the struggle between Chinese forces and the Japanese. But as China celebrated its National Day this week, there was less welcome news from China’s neighbour to the west. The Financial Times reports that a $3.6 billion hydroelectric dam being built by Chinese firms has been halted by the Burmese government. A spokesperson for Beijing angrily derided the move, saying Chinese companies rights must be protected. The Myitsone project aims to dam the Irrawaddy river and its beneficiaries include Sinohydro – for which the timing could not be worse, given its recent IPO (see WiC124).
Nor is it the only bad news for Chinese companies operating abroad. The South China Morning Post reports that a subsidiary of China Metallurgical (see WiC41) has been banned by the World Bank from participation in further projects due to “fraudulent misconduct” on a transport project in Bangladesh.
© ChinTell Ltd. All rights reserved.
Sponsored by HSBC.
The Week in China website and the weekly magazine publications are owned and maintained by ChinTell Limited, Hong Kong. Neither HSBC nor any member of the HSBC group of companies ("HSBC") endorses the contents and/or is involved in selecting, creating or editing the contents of the Week in China website or the Week in China magazine. The views expressed in these publications are solely the views of ChinTell Limited and do not necessarily reflect the views or investment ideas of HSBC. No responsibility will therefore be assumed by HSBC for the contents of these publications or for the errors or omissions therein.