A Chinese consortium aims to take a stake of up to 85 percent in a strategically important sea port in Myanmar, according to documents reviewed by Reuters, which could heighten tensions over China's growing economic clout in the country.
China has been pushing for preferential access to the deep sea port of Kyauk Pyu on the Bay of Bengal, as part of its ambitious "One Belt, One Road" initiative to deepen its links with economies throughout Asia and beyond.
A consortium led by China's CITIC Group has proposed taking a 70 percent to 85 percent stake in the $7.3 billion port, according to negotiating documents seen by Reuters and three people familiar with the talks between the Chinese State-owned conglomerate and Myanmar's civilian government.
The size of the proposed Chinese stake is larger than the 50/50 joint venture proposed by Myanmar late last year, an offer rejected by CITIC, said two people involved in the talks.
China had signaled it was willing to abandon the controversial $3.6 billion Myitsone dam project in Myanmar, but would be looking in return for concessions on other strategic opportunities.
