January 24, 2022
Border trade camps along the Myanmar-China borderline temporarily closed for the outbreak of COVID-19 resumed their operations recently. The border trade process mostly relies on the Myanmar-China border.
Border trade camps namely Muse-Ruili, Chinshwehaw-Lenchang, Kampaiti-Hteinchon and Lweje-Longchuan lie on the borderlines of both countries. Indeed, China is the main trade partner of Myanmar and it has put the largest amount of foreign investment in Myanmar. Among the border trade camps, the Muse-Ruili camp secures 83 per cent of the total border trade volume along the Myanmar-China border. It was reopened at the end of last year while the Lweje camp was reopened on 17 January 2022.
With the reopening of border trade camps, those from the agricultural sector of Myanmar and businesspersons became reactive. They primarily export rice, pulses and beans, sesame, maize, corn, fruits, dried tea, marine products, rubber, gems and animal products to China and import machinery, plastic raw materials, chemicals, personal goods and electronic equipment.
Due to statistics from China, the Myanmar-China trade volume reached US$9.07 billion in the first six-month of 2021, exceeding seven per cent of economic growth rather than the previous year. As China has more than 1,000 million of population, Myanmar’s export products are reliable for the consumption of China.
To be able to solve the payment problems between the border area, the Central Bank of Myanmar allowed the direct payment of Myanmar kyat and Chinese yuan at the border area as of 14 December 2021, contributing to smooth trading between Myanmar and Chinese businesspersons.
Whenever financial crisis and trade problems were based on the US dollar, its impacts caused raising the forex rate of the US dollar. As such, trading faced losses. Raising the prices of fuel, gold, cooking oil and other consumer goods is based on fluctuation of the US dollar, but on the political situation. Thanks to direct payment of kyat and yuan, the monetary and commodity market can ease the impacts.
It is necessary to strive for increasing the export volume and decreasing the import volume. As now the Myanmar-China border trade resumes, efforts must be made for further manufacturing the export products for earning incomes.
Now is the time to resume and resurge the State economy for recovery. Myanmar has to arrange rehabilitation in various kinds of businesses owned by the government and the business people. It is noticeable that only when the booming economy of the nation will help the people uplift living standards.