Political Risk / China
Regional Stability Key For Neighbours
October 2007 | Political Risk AlertThings appear to have settled in Myanmar after the regime forcefully suppressed street protests at the end of September, to much international dismay. There are, however, few levers to exercise pressure on the isolated regime in Myanmar. One potential lever is the export of oil and natural gas to China, India and Thailand as it is a vital source of foreign currency for the State Peace and Development Council (SPDC) regime. While Bangkok, Beijing and New Delhi are increasingly aware of the controversy surrounding their business affiliations with Myanmar, we believe regional and internal stability will be their main priority and that they therefore will seek to avoid an immediate downfall of the regime.
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