This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

U.S., Japan Want a Piece of China's Myanmar Action

Stocks in this article: KO PCRFY FRCOY LNVGY YUM BX

Myanmar's investment authorities may fear now that China's traditional industries would mold their country into something it doesn't want to be -- a scrappily overbuilt and polluted land ignominiously dependent on economic relations with the country that sculpted it that way.

"As Myanmar proceeds through the industrialization process, the country is starting to worry that massive imports of manufactured goods from China will jeopardize its weak national industry," Caijing adds. "Moreover, it has also become discontent with simply exporting its resources."

At a deeper and more vexing level, Myanmar "seeks to adjust its relations with China," according to an October 2012 report by the Institute of Developing Economies under the Japan External Trade Organization (Jetro), a government-linked body that promotes Japanese trade and investment in other parts of the world. The Southeast Asian nation formerly known as Burma hatched a foreign investment gold rush after its first transition from military rule to civilian government in 23 years in March 2011. Before then Myanmar stuck by China as Western nations imposed sanctions on the strict authoritarian government. The new government wanted out of China's shadow.

"In order to eventually detach itself from its excessive dependence on China, Myanmar's government began to seek out ways to improve its relations with Western countries," the Jetro report says. "Under these circumstances, Japan reinitiated its full-fledged assistance to Myanmar, and a large number of Japanese private companies began to visit the country.

"The United States also began to develop its business relationship with Myanmar, for example, by easing restrictions on American companies investing in Myanmar," the (obviously pro-Tokyo) report adds. "Thus, entering the age of democratization, the presence of China in Myanmar is becoming relatively weaker."

As of last year, Myanmar's Directorate of Investment & Company Registration said 88% of overseas projects went to power, mining and oil and gas. About 34% of the $40.4 billion in foreign investment then came from China -- too much, apparently. China's lost traction would help American companies that are contributing to services and tourism. For example, KFC, a unit of YUM! Brands (YUM), serves fried chicken served in the capital Yangon. In June, Coca-Cola (KO) announced the opening of its first Myanmar bottling plant, part of the drink giant's five-year investment plans worth $200 million and 22,000 local jobs.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs