Two Myanmar private organizations have signed a memorandum of understanding (MoU) with China’s CITIC Construction to implement an agronomics service center project, Myanmar News Agency reported Monday [24 July 2017]. The MoU, which involves Myanmar Rice Association and Myanmar Agronomics Public Corporation, was signed in Nay Pyi Yaw in the weekend…Full Article: Xinhua July 2017

Key Point

  • During the 2016 to 2017 fiscal year, Myanmar exported approximately 1.5 million MTs of rice. Roughly half of these exports were shipped to China.

ChinaAg Comments

  • In May 2017, a Chinese consortium planned to obtain a majority stake in Myanmar’s Kyaukpyu (Bay of Bengal) deep water port. The consortium, spearheaded by China’s CITIC Group, has proposed investing a 70% to 85% stake in Myanmar’s USD 7.3 billion Kyaukphyu port. In 2016, CITIC Group rejected a 50/50 joint-venture offer by Myanmar.
  • In January 2017, McDonald’s announced it would sell 80% of Chinese operations (including Hong Kong). As a result of the US$2.08 billion deal, China’s CITIC will have a 52% stake while USA’s Carlyle Group will have a 28% stake. McDonald’s will retain a 20% stake.
  • In April 2016, Myanmar rice traders expected rice exports to China to increase following the country’s Thingyan Water Festival (aka Burmese New Year).
  • In August 2015, in the wake of severe flooding, Myanmar rice traders temporarily suspended Chinese exports for one and a half months in order to safeguard domestic supply. Shipments were expected to resume in mid-September 2015 after the monsoon paddy harvest.
  • In July 2015, according to the Joint Secretary of the Myanmar Rice Federation, 59 Chinese rice traders were arrested for tax evasion in China, causing exports to slow. China reportedly accounts for half of Myanmar’s rice exports.
  • In March 2015, Myanmar’s Rice Federation selected nine rice milling companies to legally export rice to eastern China’s coastal ports. However, non-licensed rice exports will likely continue overland via Muse (northern Shan State, Myanmar) – Ruili (Yunnan Province) border crossing.
  • In 2014, China banned Burmese rice imports in order to institute new safety and quality control regulations. According to the Chairman of the Myanmar Rice Federation, China will begin importing rice legally in January 2015 (i.e. at least 1 million MTs of Burmese rice at US$400 per MT).
  • During the 2013 to 2014 fiscal year, more than 60% of Myanmar’s border trade occurred via the Muse checkpoint with China.
  • In 2012, Boyu Capital, China Investment Corp. (CIC), Citic Capital and China Development Bank bought a 5.6% stake in Alibaba, an e-commerce platform.
  • In December 2012, China established its first state-backed agricultural fund. The fund reportedly received CNY 1 billion (US$160 million) contributions from the Ministry of Finance, CITIC Group, China Agricultural Bank and Cinda Asset Management.
  • Founded in 1979 and headquartered Beijing, CITIC Group (formerly CITIC Pacific; HKG:0267) is a state-owned conglomerate. Dah Chong Hong Holdings (Hong Kong listed) and Citic Guoan Wine (Shanghai listed) are subsidiaries of CITIC.

 

Hong Kong Trends

Similar Posts by ChinaAg

Spread the word. Share this post!