11 - Internationalization of RMB and Tin Ore Trade in China-Myanmar Frontier Governance: Views from Yunnan Province

Summary

INTRODUCTION

Ever since China and Myanmar have shared a border, Yunnan as the melting point of different cultures and civilizations plays a critical role in China's policy towards South and Southeast Asia. In this regard being named the “bridgehead” (qiaotoubao 桥头堡) and later “radiation centre” (fushe zhongxin 辐射中心) or “pivot” in Chinese foreign policy, Yunnan has enjoyed an essential place for China's actions in the region (Summers 2019; Lu 2013). The “bridgehead” is understood mainly as a military term that refers to a strategic chokepoint on the field of battle. It mainly relates to a sturdy structure that defends and controls a bridge or ferry crossing. In economic terms, however, it acts as a port and facilitates the ease of transportation while it constitutes an international centre of trade, integrating shipping, finance and information. Going further as being located at the edge of the Chinese civilization, “bridgeheads”, namely Heilongjiang and Yunnan provinces, and Xinjiang Autonomous Region, cater to resource frontiers as they are responsible for managing frontier governance with a particular focus on cross-border trade and providing stability for China's energy security and mineral resources. Moreover, the term “bridgehead” entails the role of the centre for logistical and supply chains, serving the specific purpose of controlling the flow of resources along international trade routes (Steinberg and Fan 2012, pp. 213–20). Moreover, as part of the frontier regions, “bridgeheads” are responsible for managing the nontraditional transnational security threats and identifying their origins, conceptions and effects, like irregular migration, human trafficking, drug trafficking or climate changes (Caballero-Anthony 2016). Apart from playing an important role in national policy, the essential characteristics of a bridgehead are its powers to control, develop, and influence the regions in the neighbourhood (Jinxin 2019). To have a better understanding of Yunnan's role in China's interactions with Myanmar, the paper looks into the issues of cross-border governance and discusses the role of Yunnan in China's investment policies and the internationalization of the Chinese currency RMB, with a particular focus on the micro level across the border. The first part introduces basic Western and Chinese understandings of cross-border governance.