Unfinished business in Burma
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.
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