After negotiations, the Burmese authorities agreed to pay out, but only to Chinese companies that were operating legally in the area.
Analysts say the Burmese army’s treatment of ethnic groups along the Sino-Burmese border in 2009 distressed Beijing and caused it to rethink its Burma policy.
“In view of the unilateral action taken by Naypyidaw that inadvertently served to upset the order in the local communities on the Chinese border in the summer of 2009, Beijing may be compelled to conclude that when it comes to peace on its doorstep, the issues involved are not entirely 'internal' after all,” wrote Xiaolin Guo, a Sino-Burmese affairs expert, in her policy brief in December.
Regarding ongoing ethnic issues, Burmese generals reportedly boasted they can conquer the armed ethnic groups easily. However, Chinese experts on Sino-Burmese issues say resolving tension with force is not so easy.
Li Chenyang and Lye Liang Fook noted in their article, “China’s Policy towards Myanmar: a Successful Model for Dealing with the Myanmar Issue?” that the Sino-Burmese border is an estimated 2,204 km long with more than 40,000 ethnic militia fighters based there, but less than 300 km of the border is directly controlled by the military regime.
Chenyang and Fook said that ethnic groups along the border have pursued independence or greater autonomy for a long time, which has implications for the safety and stability of southwest China.