Local partners and social engagement strategies: Explaining public responses to Chinese investment in Myanmar

Abstract

In developing countries hosting Chinese-financed infrastructure projects under the Belt and Road Initiative (BRI), some projects gain public support while others encounter opposition. This article seeks to provide an explanation for these different reactions, testing in particular the extent to which the differences stem from the nature of the investment coalitions, including the local partners that Chinese companies choose to work with, and the social engagement strategies that are adopted. Based on 2 survey experiments conducted among the general public and elite college students in Myanmar, the article concludes that Chinese firms, regardless of whether they are state-owned or privately owned, gain the most support when they partner with independent companies with no links to the Burmese military and when they engage directly with the local community. In addition, public reaction is colored by political affiliation, as supporters of the National League for Democracy and groups with access to non-state media were the most critical of projects involving military-linked companies. Overall, this article debunks the myth that Chinese-financed projects can be treated in a monolithic way and has significant implications for BRI. As the BRI aims to promote high-quality development in host states, projects need to be built through inclusive investment coalitions and companies should be encouraged to engage directly with local communities.