China signed a contract with Myanmar on March 27 to build a 2,000-km gas and oil pipeline running through Ruili and Kunming in Yunnan province, Guizhou province to Chongqing municipality in southwestern China. This would help China avoid the long detour through the congested Malacca Straits as well as strengthen its access to rich energy reserves in Myanmar. Both the countries have also agreed to work together to develop hydropower projects. China, one of Myanmar's few diplomatic allies, has been very active in investing in the country’s resources, including natural gas, oil, minerals and timber1.

• 1. “China, Myanmar in oil deal,” Reuters, March 26, 2009, at http://asiaenergy.blogspot.com/2009_03_22 archive.html.