China’s move to extend its geopolitical influence in the area is disguised as development assistance, according to an article in the Myanmarese media outlet, The Irrawaddy.
The proposal by a Chinese proxy is to construct a 172 km tunnel linking Mae Hong Son to Chiang Mai. The Chinese government is reportedly ready to give infrastructure fund support worth 30-40 billion Thai bahts, provided an MoU is signed.
On paper, the project addresses a genuine developmental bottleneck. Mae Hong Son is one of Thailand’s poorest provinces and the poorest in the north, economically marginalised by mountainous terrain and limited road access, resulting in weak integration into national supply chains. The tunnel promises to change this by dramatically reducing travel time and improving year-round connectivity. For locals, the appeal is obvious, and efforts from the distant Thai capital have been sporadic, underfunded, or politically marginalised, the article stated.
Yet the strategic implications of China’s presence in this plan extend well beyond provincial development. China Highway Engineering Consulting, a subsidiary of China Communications Construction, a company that has been sanctioned by the United States since 2020 due to its role in South China Sea island-building as a crucial player in China’s BRI master plan, is playing an active role in pushing the project in Thailand.
It also has a lengthy track record of corruption and malpractices in development projects around the world. Any involvement of the company should set alarm bells ringing, the article observed.
These connectivity projects in northern Thailand, in other words, do not exist in isolation; they form part of an emerging cross-border logistical ecosystem that links Thailand’s upper north to key routes within Myanmar, the article pointed out.
This new project would result in a better transportation route for minerals from inside Myanmar -- and those might even be rare earth elements. If the project gets underway, then it could drive up demand for Myanmar’s minerals and, in turn, encourage the expansion of mining activities against the backdrop of political instability and the war economy there, the article observes.
But above all, the project would have a grave environmental impact on Thailand and the whole Mekong and Salween River Basin. Once again, China delegates the risks to downstream communities while reaping profits from being the biggest player in the global critical minerals supply chain, the article added.
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