CNI News

7 June 2025

The ongoing fighting between the Arakan Army (AA) and the Myanmar Tatmadaw in Kyaukpyu, Rakhine State, where the Chinese project is located, is causing a rivalry between the East and the West, according to military and political analysts. 

The AA, which has controlled 14 of the 17 townships in Rakhine State, is continuing its battle to capture Kyaukphyu town.

Chinese security forces could fight alongside the Myanmar Tatmadaw to protect China’s interests, while Western countries could help the AA, thus creating a power struggle between East and West in the Kyaukpyu battle, Colonel Khun Okkar, chairman of the Pa-O National Liberation Front (PNLO/NCA-S), which signed the NCA, told CNI News.

The Security Forces Law was issued to protect the economy. After the security law was issued by Nay Pyi Taw, registered security forces arrived. These security forces will protect and safeguard their interests, and will do whatever they can to protect them, in various ways. 

While seeing the AA

So, in cases like Kyaukphyu, it's like a competition between East and West. Chinese security forces are fighting alongside Naypyidaw troops to defend their economy. Western countries may also help the AA in some way. So, there may be powerful countries behind the Kyaukphyu battle.

Furthermore, as a result of the earthquake damage,despite the ceasefire extension between the two forces, fighting continues on the ground. The AA's offensive in Kyaukpyu, where the Chinese project is located, has intensified, and on May 29, a drone attack was launched on a checkpoint near the Chinese government-owned natural gas power plant (Power China) in Madei Kyun village, Kyaukpyu.

Kyaukphyu battles are approaching the Chinese state-owned natural gas power plant, so Chinese security forces have been reinforced, reported the BBC. While the SAC has lost control of many territories, it imposed the private security service law which allows holding weapons on February 18.

She had heard that troops from the Chinese security company were former Chinese soldiers and they had arrived at Kyaukphyu a lot, Dr. Hla Kyaw Zaw, a China-Myanmar affairs analyst told CNI News.

While seeing the Madei Island Project in Rakhine State

" I've heard that many troops of a Chinese security company have arrived at Kyaukphyu to protect the Kyaukphyu Deepsea Port. Because China is doing business around the world, the security company may be hired. Chinese security companies are made up of former soldiers. In China, if a man has done a military service for two years or five, they can leave the army. When they have become civilians, many of them found security companies. The rich and film actors tend to hire security staff as their bodyguards. The military council has enacted the security service law. There may be Chinese security forces there." she said.

The SAC receives the most foreign income from projects in Kyaukphyu Township, according to a report released by the Arakan Oil Watch (AOW) on April 21.

The AOW estimates that the Shwe natural gas field generates around $550 million annually from natural gas sales and around $25 million in transit fees for oil exported via the pipeline to China.

The report also states that despite military tensions in Rakhine State since November 2023, oil and gas operations are operating normally.