On February 1, the Myanmar army carried out a coup, arresting State Counselor Aung San Suu Kyi and other democratic leaders of Myanmar.

Myanmar soldiers appear near a parliament complex in Naypyitaw, Myanmar, February 2.

The US first imposed sanctions on Myanmar in 1998, after the country’s military government suppressed a protest.

Restrictions were gradually eased following reforms by former Myanmar president Thein Sein and the military lifted Suu Kyi’s house arrest.

In 2019, US President Donald Trump introduced new sanctions against Myanmar’s military leaders, including General Min Aung Hlaing, who led the coup, for accusations of `genocide` against

Economic sanctions, including financial aid cuts, asset freezes and investment reversals, have caused `comprehensive harm` to Myanmar, said Heng Kai, a doctoral student at the

Sanctions `not only affect Myanmar’s military government but also affect the economic development of the entire country,` he added.

Myanmar is one of the poorest countries in Asia.

Xu Liping, an expert at the Institute of Asia-Pacific Studies of the Chinese Academy of Social Sciences, said that US sanctions will likely target General Aung Hlaing and his allies.

However, President Biden may consider softening the action if Ms. Suu Kyi is released.

Heng Kai meanwhile is skeptical about the effectiveness of sanctions.

China has so far maintained a neutral attitude in its response to developments in Myanmar.

According to Xu, the current situation cannot help but make Chinese investors worry about the progress of projects they are implementing in Myanmar.

But on the other hand, if the US imposes sanctions, this action will help open the door for China to increase its influence over Myanmar, said Rodger Baker, an analyst at geopolitical consulting firm Stratfor.

The US does not have many economic interests in Myanmar, but its Asian allies such as Japan, South Korea, India… are recently expanding their presence and business here.

`If the US imposes sanctions, it could impact the US partnership structure in countering Chinese influence in the region,` Baker said.

Baker’s comments came after Japan issued a similar warning.

Inside the United States, there are increasing calls for the Biden administration to take tougher action against the Myanmar military.

According to observers, the ongoing crisis in Myanmar is a test for new US President Biden’s foreign policy in a region where China is increasingly expanding its influence.

US-China tensions have escalated sharply under President Trump and are now one of the biggest policy challenges facing Biden.

Competition with Beijing `will shape Washington’s response to the coup in Myanmar,` a report from Stratfor published on February 1 assessed.