This issue brief examines reasons for the sharp drop in Chinese investment in Myanmar since 2011, the impact of the reduced investment, and the prospects for future Chinese investment in the nation, formerly known as Burma..... Key Findings: 1. After a reformist government replaced a military junta in Myanmar in 2011, Chinese investment in the nation plummeted – approximately $12 billion from 2008 to 2011 to just $407 million in the 2012/2013 fiscal year.... 2. The three largest Chinese investments in Myanmar – the Myitsone Dam, the Letpadaung Copper Mine and the Sino-Myanmar oil and gas pipelines – have sparked local opposition and criticism in Myanmar to varying degrees, creating problems and uncertainties for Chinese investors... 3. China perceives that Myanmar is now a more unfriendly and risky place to invest and is displeased that the Myanmar government is not doing more to protect Chinese interest in the country.... 4. In a move to gain greater acceptance of its investments in Myanmar, China is improving its profit-sharing, environmental and corporate social responsibility programs in the nation... 5. China has learned important lessons about investing in other countries from the problems it has encountered in Myanmar... 6. Reduced Chinese investment in Myanmar could hurt Myanmar?s economy in unexpected ways. Greater foreign investment is needed in Myanmar, particularly in the nation?s underdeveloped and inadequate infrastructure that is acting as an obstacle to industrialization... 7. Chinese investors and the government of Myanmar should work together to reduce distrust and hostility on both sides and increase responsible and mutually beneficial investment in Myanmar to benefit both nations.