Envoy for Asia to prioritize Myanmar 'for now'

"He has rich experience in Asian affairs and has his own way of handling the issues," Xu said.

On Monday, representatives of Myanmar's Kachin Independence Organization met with Myanmar government officials in the Chinese border town of Ruili, AFP quoted an analyst as saying.

"I think this meeting may be a little more productive than the previous one (in February) although we cannot expect too much," said Aung Kyaw Zaw, an analyst with close ties to the KIO who was monitoring the talks in Ruili.

"Myanmar troops are not retreating from Kachin state yet," he said, adding that Chinese officials and members of some of Myanmar's other ethnic groups were also present for the talks.

A dozen rounds of talks since 2011 have faltered with fighting continuing to claim lives.

But analysts said a new round in February, followed up by Monday's discussions, were a positive development after the latest upsurge in fighting.

Tens of thousands of people have been displaced since June 2011, when a 17-year ceasefire between the government and the Kachin broke down.

Beijing has urged an end to the fight.

Song Qingrun, a Myanmar studies researcher with the China Institutes of Contemporary International Relations, said China-Myanmar relations have faced a number of challenges. The countries share a 2,200 km border.

"The Kachin conflict endangers security along the border. And since 2011, several large-scale Chinese projects in Myanmar have been suspended, bringing huge losses to Chinese firms," Song said.

He was referring to incidents such as Myanmar in 2011 suspending work on a $3.6 billion Chinese-led dam in Myitsone, Myanmar's largest hydropower project, citing complaints from residents and opposition parties.

"The projects have been discredited by some anti-China groups, while media reports have ignored the huge contribution they were to bring to the local economy and community. Now Chinese companies are extremely cautious in investing in Myanmar," Song said.

lixiaokun@chinadaily.com.cn