And Myanmar should compensate China if it cannot fulfill the signed agreements, the analyst said.

Zheng Hao, a commentator for Hong Kong-based Phoenix TV, said in his program that originally the dam was set to give a boost to the local economy and people's livelihoods.

"But due to various reasons, including domestic political factors and moves of the West behind the scenes, Myanmar changed its mind, casting a shadow over cooperation with China," he said.

In the talks on Wednesday, Li also noted that it is very important to consolidate ties between Beijing and Nay Pyi Taw as "profound and complex changes are taking place in regional and international situation".

Zhang said both China and Myanmar should adjust and deepen ties, as Myanmar has recently improved its relationship with other parties including the US and other Western countries, India and Southeast Asian countries.

In Myanmar on Wednesday, heavy rain brought an uneasy calm to the country after five days of deadly sectarian strife, though residents said they were still too afraid to sleep at night and faced a new problem of food shortages.

A state of emergency has been declared in the country's western Rakhine state, which has been rocked by a wave of rioting and arson, posing a major test for the reformist government which took power last year.

Thein Sein said on Tuesday the incidents should be seen against the backcloth of deep and complicated issues.

He insisted that the government can still afford to aid those who have lost houses and properties.

Foreign Ministry spokesperson Liu Weimin said on Wednesday at a regular news briefing that China supports the efforts made by the Myanmar government to maintain domestic stability and ethnic harmony.

The unrest in Myanmar was triggered by the rape and murder last month of a Buddhist woman, allegedly by three Muslims, and the June 3 lynching of 10 Muslims in apparent retaliation.

Contact the writers at lixiaokun@chinadaily.com.cn and zhouwa@chinadaily.com.cn

AP and AFP contributed to this story.