Burmese and Chinese businessmen, who have invested in Laiza town, the headquarters of the Kachin Independence Organization (KIO), are keeping a wary eye on the relationship between the Burmese military junta and the KIO.
Relations between the junta and the ethnic ceasefire group in Kachin State have soured and are terribly strained after the junta proposed that it transform its armed wing, the Kachin Independence Army into the Border Guard Force, which the KIO rejected. Instead it told the junta brass that it wants the KIA to change to a Kachin Regional Guard Force (KRGF) and also demanded a stake in the new Kachin State Government to follow the 2010 general elections.
Businessmen in Laiza are closely monitoring the situation because if it deteriorates, they will move their properties. They are especially alert after news leaked out about meetings between the KIO and the junta brass, a local businessman said.
On September 4, senior KIO leaders and the organisation’s regional administrative officers and campaigners held a meeting in Laiza Hotel in the morning.
"I want to keep watch until October. If the situation worsens we will leave. Some shops are already closed. I do not know where they have moved their goods," a shop owner said.
The investors are mostly Chinese. They have invested in motorcycle companies, construction tool firms, textile shops, and shops dealing in electronic and related items.
Ceasefire groups on the Sino-Burma border, which have opposed transformation to the Border Guard Force, have no plans to extend their business since tension began mounting and clashes occurred between the Burmese Army and the Myanmar National Democratic Alliance Army (MNDAA) last month.
Now, some Chinese businessmen have closed their shops in Laiza. Some shops have downed shutters in Laiza market, a local said.
Many people have hired rooms and space on the Chinese side of Laiza. Chinese authorities are therefore compiling a list.
"Locals are also moving their belongings. People from China have lots of investments in Kachin State. Some people have already moved their goods and belongings. While some shops are already closed, gambling dens are still open," he added.
Most businessmen are from China and some are from Myitkyina and Bhamo, who have opened stores in Laiza.
Even though people are apprehensive, the KIO has not made any public announcement on the prevailing situation.
Local sources, said after the Burmese Army and Kokang Army fought gun battles near the Sino-Burma border in northern Shan State, the junta has deployed more troops near Laiza town.
KIO along with other ceasefire armed groups are being pressurized by the junta to transform to the Border Guard Force within October. As such people watching the situation with keen interest and apprehension.
