500 Chinese arrive in Kyaukphyu amidst escalating clashes in Rakhine State

Aye Myat Khaing

Narinjara News, 2 May 2024

Amidst the escalating clashes in Rakhine State, about 500 Chinese nationals arrived in Kyaukphyu township on Tuesday.

The Chinese individuals came by a ship to Maday island of Kyaukphyu locality, where the Chinese projects are located. They are also understood to visit the deep-sea port project in Kyaukphyu.

"The ship directly entered Maday island from China. About 20 construction machines were also brought. All the backhoes and machines were already transported to the project site. The ship has now departed the port,” said a reliable source.

The Chinese officials are staying at Varanasi hotel in Kyaukphyu, informed a local social activist.

The visiting Chinese nationals include engineers and they are engaged in broadening the road from Maday island to  Kyaukphyu   special economic zone. They are assumed to work for the deep-sea port too.

"They may build additional deep-sea ports namely number 1 and 2. We have learnt that they are going to build more roads connecting Kulabar village. They have  undertaken the project works  as the war hardly affect their operations,” added the social activist.

The Kyaukphyu deep-sea port project and the special economic zone are identified as significant Chinese projects in Myanmar.

On 26 December 2023, the military junta announced that China's CITIC group and the junta had signed an addendum for the Kyaukphyu deep-sea port project involving an investment of billions of dollars.

The junta also mentioned that both sides were  collaborating to initiate the project's urgent  implementation. However, they have not disclosed more details about the agreement.

The Chinese nationals have been asked to implement the addendum guidelines relating to the deep-sea port project. It may have significant impacts on the Rakhine region, currently witnessing clashes between the junta forces and  Arakha Army (AA) soldiers.

“Even during the period of political stability in the past, those projects did not ensure due benefits to local residents. With the ongoing intense fighting, neither the junta nor the AA can fully concentrate on the development works. So China's expansion works may lead to significant losses for the Rakhine people,” he added.

Kyaukphyu special economic zone project agreement was initially signed under the U Thein Sein's administration where  85% ownership was enjoyed by China (15% by Myanmar). During the National League for Democracy (NLD) run government, the contract was revised in November 2018, where the ownership of Chinese companies was reduced to 70% (30% for Myanmar).

Now the junta soldiers are experiencing setbacks in various military operations and they have sought Beijing’s assistance for formulating a ceasefire. Despite multiple negotiations with the AA, they have failed to reach an agreement till date.

Despite the conflicts,  both the armed sides have agreed to avoid targeting the Chinese projects in Rakhine State, so that they can continue their works without interruption, stated a social activist of Kyaukphyu.