Research On Sino - Burmese Financial Cooperation

The peoples in China and the Union of Myanmar influenced each othersin the exchanges in the politics, culture and economy, due to geographicalproximity,in a long time. At the same time, both the economic cooperation andpolitical communication are developed. Especially,when the China-AseanFree Trade Area worked,there were new opportunities for the financialcooperation, meanwhile, the related research also faced a new era.This paper reflects on financial cooperation between China and Union ofMyanmar,which mainly analyzes on the history of the communication,financial system of Myanmar, the economic cooperation between the twocountries, theoretical basis, basic condition of the bilateral financialcooperation and pattern of the financial cooperation. Due to the financialcharacteristics of Myanmar, the present development of the financialcooperation is asymmetrical. And the financial infrastructure is weak as aresult of the history and politics in Myanmar,which made it need theexperience of financial development in developing countries. Meanwhile, withreform and opening up in China,the financial industry is so developed that itis in a critical period to go out.At first,China and Myanmar own goodcooperation basis because of the long history of their exchange.At second,there is the great cooperation space,due to the difference on the nature,resources of foreign exchange and financial development. Then, Myanmarhave speeded up the opening up to the outside, after the changes of thedemocratic elections and the law of the foreign investment,bringing a morebroad space on financial cooperation. Stil, due to the politics and history,there are lots of different opinions between them,which takes some obstacles inbilateral financial cooperation.The main theories on financial bilateral cooperation are the asymmetrictheory and international relations theory, which analyzed the basic conditionsfor cooperation on the increasing of bilateral import and export, bilateralinvestment.Also, considering the innovation on the method of financialcooperation, the research on financial security and cooperation in traditionalfield should expand to corporate finance, project finance, capital anddevelopmental financial cooperation. First of all,the political instability inMyanmar is an important risk factor,which also should be overcome infinancial cooperation between China and Myanmar.