China's frenzied dam building at home and abroad is emerging as a flash point in inter- and intrastate relations in Asia. Burma's decision to suspend work on a controversial Chinese-funded dam marks a tactical retreat on a project that has symbolized China's resource greed and is a trigger for renewed ethnic insurgency in areas of northern Burma (aka Myanmar).

The Myitsone Dam, where work is being halted, is one of seven dam projects in northern Burma sponsored by China to generate electricity for export to its own market, even as much of Burma suffers from long power outages every day. China also has been erecting dams on its side of the border on the rivers flowing to Burma and other countries — from Russia to India.

The projects have drawn attention to their mounting environmental and human costs. In Burma, the submergence of vast tracts of land and the forced displacement of thousands of residents have instigated new intrastate disputes, leading to renewed fighting and the end of a 17-year ceasefire between the Kachin Independence Army and government forces.