China is looking to invest in another strategically important port in Myanmar. As part of its sprawling intercontinental infrastructure buildup, the One Belt, One Road initiative, Beijing is keen to pour millions into the deepsea port of Kyauk Pyu on the Bay of Bengal and is in discussions with the Southeast Asian nation to take an 85% stake in the facility.
A group led by state backed CITIC Group is leading the negotiations on the Chinese side which have been ongoing for many months. China Merchants is one of the parties within the consortium.
The port is located where an oil and gas pipeline starts and heads into southwest China, providing an alternative to tankers transiting the Malacca Strait to get to the People’s Republic.