In Myanmar, the notion that local conflicts can be halted by addressing economic rather than political grievances guides ceasefire agreements with non-state armed actors and informs regional efforts on economic development in troubled conflict areas.However, these economic development efforts are evolving alongside deeply held communal concerns about the intentions and effects of investments in areas previously controlled by ethnic minority armed actors. In this context, the Chinese government’s flagship development project in Myanmar,the Myitsone Dam in Kachin State, became a rallying point for communal protest. This led the Myanmar government to halt work on the project in 2011. Currently, Myanmar is coming under immense pressure from the Chinese government to resume work on the Myitsone dam. At the same time, however, a strong social movement is actively opposing the dam project. This has resulted in increased military tension along the two countries’ shared border.This illustrates that investments in economic infrastructure projects, while ostensibly aimed at increasing stability through economic concessions and regional development, may instead increase tension and insecurity.