Geopolitical Issues

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Indian Economy - Understanding the basics of Indian economic system

China-Myanmar Economic Corridor (CMEC)

Context: Recently, China has expressed its desire to extend the China-Myanmar Economic Corridor (CMEC) to Sri Lanka.

CMEC is the newest of the six land corridors under the BRI, and has replaced the Bangladesh China India Myanmar (BCIM) corridor in prominence.
India and Bhutan are the only countries in South Asia that have remained out of BRI.
Initially, it was part of the ambitious 'Bangladesh China India Myanmar (BCIM) corridor' proposed in 2013 but later it became a standalone economic corridor in 2017.
The Bangladesh China India Myanmar (BCIM) corridor, proposed in 2013 to connect Kunming in China's Yunnan province to Kolkata, has largely stalled so far.

The China–Myanmar Economic Corridor (CMEC) is a number of infrastructure projects supporting connectivity between Myanmar and China.
It builds road and rail transport from China's Yunnan province to Kyaukpyu in Rakhine State via Muej and Mandalay.
CMEC and China Pakistan Economic Corridor (CPEC) are both part of BRI projects aimed at providing China access to warm waters to avoid the Malacca dilemma, the Bay of Bengal and deep sea ports in the Arabian Sea respectively.
Major projects under CMEC include Kyaukphyu Special Economic Zone (SEZ), Kyaukphyu-Kunming Railway, Oil and Gas Pipeline, New Yangon City Project and Myitkyina Industrial Park.
The Kyaukphyu–Kunming Railway Project is part of the larger Pan-Asia Railway network and aims to connect the port of Kyaukphyu in Myanmar to Kunming, the capital of China's Yunnan province. The purpose of the railway is to facilitate the transportation of goods and people between the two countries.

CMEC has significant geopolitical and security implications.
CMEC includes the Kyaukphyu port in Myanmar, which provides China access to the Bay of Bengal.
CMEC and CPEC are both part of BRI projects aimed at providing China with warm water access to avoid the Malacca Dilemma, deep sea ports in the Bay of Bengal and Arabian Sea respectively, land communication corridors and ports belonging to Chinese territory. Pipelines have to be streamlined.
China will be able to shift its manufacturing to its southwestern provinces to avoid the middle-income trap.
It offers short routes to markets in South Asia, East Africa, West Asia and Europe.
It opens Myanmar's market to all Chinese goods and services and allows China to import raw materials from Myanmar and beyond.

China's massive infrastructure projects in South Asia give it a growing presence in the Indian Ocean region.
India needs to be concerned about CMEC, as it leads into the Bay of Bengal and puts the Andaman and Nicobar Islands at risk.
Which brings the Chinese closer to the Indian coastline, like CPEC, which brings China to our coastline in the Persian Gulf and Arabian Sea.
This will reinforce and strengthen China's String of Pearls strategy.
CPEC, CMEC and CNEC symbolize China's economic and strategic rise in the Indian subcontinent.
Sri Lanka is traditionally seen as India's backyard, this will threaten India's security in the neighborhood.

The BRI was launched by Chinese President Xi Jinping in 2013.
Objective: To connect Asia with Europe and Africa, through a network of railways, highways, ports, airports, and other infrastructure projects with the intent to promote trade, investment, and economic growth in participating countries.
Principal components: The Silk Road Economic Belt and the Maritime Silk Road

Since India refused to join BRI, the BCIM corridor has also stalled, and has been replaced by a later launched China-Myanmar Economic Corridor.

India strongly opposes China’s Belt and Road Initiative (BRI), particularly the China-Pakistan Economic Corridor (CPEC), because it passes through Pakistan-occupied Kashmir (PoK).
CPEC (China-Pakistan Economic Corridor) which connects Gwadar Port in Pakistan’s Baluchistan with China’s Xinjiang province is the flagship project of BRI.
India’s main concern is that this project disregards its sovereignty and territorial integrity.