Speaking to CCTV, Carnegie-Tsinghua’s Wang Tao explained the political details behind the production sharing agreement signed between China, Myanmar, South Korea, and India that has produced the China-Myanmar Pipeline. Wang noted that China’s engagement with foreign multinationals during production of the pipeline, which will funnel an annual two million tons of crude oil to Myanmar, likely helped the project move forward and gain security.
Despite fears that China may be losing its historical competitive advantage in development projects in Myanmar, Wang indicated that Chinese cooperation with international oil companies and multinationals can help reduce project risk in sensitive areas. He added that such cooperation may also grant Chinese companies "unique knowledge or techniques" for dealing with local communities and it will assist Myanmar in reintegrating into the international community. Wang stated that Chinese aid to local communities in Myanmar during production of the pipeline was necessary, and that Chinese companies operating abroad should seek to be transparent and engage with local communities.