KEY FINDINGS: 1. The prolonged Kachin conflict is a major obstacle to Myanmar?s national reconciliation and a challenging test for the democratization process. 2. The KIO and the Myanmar government differ on the priority between the cease-fire and the political dialogue. Without addressing this difference, the nationwide peace accord proposed by the government will most likely lack the KIO?s participation. 3. The disagreements on terms have hindered a formal cease-fire. In addition, the existing economic interest groups profiting from the armed conflict have further undermined the prospect for progress. 4. China intervened in the Kachin negotiations in 2013 to protect its national interests. A crucial motivation was a concern about the ?internationalization” of the Kachin issue and the potential US role along the Chinese border. 5. Despite domestic and external pressure, the US has refrained from playing a formal and active role in the Kachin conflict. The need to balance the impact on domestic politics in Myanmar and US-China relations are factors in US policy. 6.A The US has attempted to discuss various options of cooperation with China on the Kachin issue. So far, such attempts have not been accepted by China.