“A milestone” heralding a new chapter in the relationship between Myanmar and the US said a smiling Burmese president Thein Sein as he met with US Secretary of State Hillary Clinton on Thursday. The most senior American official to visit the country in more than half a century, she told the president she was “encouraged” by the recent moves towards reform in Myanmar, also known as Burma. But while Washington may be eager to encourage that process of reform, it’s also wary of China’s increasing influence in the resource-rich country.

From our correspondent in Myanmar

It’s morning rush hour in a popular teahouse in the centre of Rangoon. Around the crowded tables people are reading the papers and talking about the latest news.

The political situation is changing fast and there is plenty to talk about. One of the customers enthusiastically displays the front page of a weekly magazine. It carries a picture of a broadly-smiling Zarganar, an outspoken comedian recently released from prison.

A few months ago his name was banned. But now his jokes find their way into print and people dare to chuckle openly.

Reforms
“We have come a long way,” agrees the teashop owner, but he adds that the government is still wary about implementing reforms. “They need a lot of encouragement and praise, especially from the international community.”

He has pasted his own contribution on the teashop wall. “Thank you president for the decision you have made,” it reads in curling Burmese script, followed by:  “Condemn China for exploiting our country for their own benefit.”

Will of the people
The poster refers to a surprise announcement by Thein Sein, who early this year became Burma’s first “civilian” president, to suspend a huge Chinese-funded hydro-power project in Kachin State. The reason, he said, was that the project was “contrary to the will of the people”.

The people’s will has not, in the past, been much of a consideration for Myanmar’s military rulers and Zarganar recalls that the announcement was greeted in his prison with “loud whoops of joy. Some prisoners took their shirts off and danced around.”

China's kitchen
The euphoria stemmed from more than just environmental concerns. Ordinary people feel that China’s investments bring them no benefits. Power generated by the dam was earmarked for export to China while many households in Burma have no electricity.
As one old monk put it: “We have become China’s kitchen: they take the food and leave us the rubbish.”

Suspicion
Shunned by the West, Myanmar has fallen ever more closely into China’s orbit. Beijing is the country’s biggest foreign investor. Apart from hydro-power, China’s ambitious plans include mining and infrastructure projects, a deep-sea port for oil tankers that will be connected with China by highway, railway and an oil pipeline.

China also hopes to re-establish its southern ‘silk route’, with Bangladesh and India.  Many Burmese, including government officials, view their mighty northern neighbour with deep suspicion.  The older generation in the army cut their teeth fighting against a Chinese-backed Communist insurgency in the 1960s. It left them weary.

Conspicuous Chinese consumption
It is partly the fear of anti-Chinese protests and of being too reliant on China that has motivated the current leaders to mend fences with the West. Resentment of China’s expanding economic footprint is growing. Between 1and 2 million Chinese nationals have moved into northern Myanmar where they dominate the lucrative jade-and-gem trade.

With their profits they have bought up most of the commercial centres of Mandalay and Myitkyina. There they flaunt their wealth and the most expensive cars all have Chinese number plates. Land prices are rising sharply as prime locations are snapped up by Chinese businessmen.

The influx of business people has also spawned prostitution. Church leaders in Myitkyina say Chinese now make up more than half the population and many locals feel the northern states are becoming de facto provinces of China.

Just say no
Myanmar’s leaders were quick to reassure China that their projects were safe after suspending the Kachin State project. But for many Burmese the abandoned dam site, the scarred hills and half-finished concrete embankments, at the birthplace of Burma’s revered Irrawaddy River, symbolise that their leaders can say no to China.

Combined with the hope of renewed contact with the West symbolised by Clinton’s visit that might encourage them to press the regime to put a stop to China’s fast growing influence in their country.