Hopang, a small town in northern Shan State, has undergone dramatic social and economic changes since falling into the hands of the United Wa State Army (UWSA) early this year. Residents are complaining of high taxes and “Sinicization” under the UWSA administration, with a proliferation of casinos, massage parlors and brothels.
Hopang came under Wa rule two months after the ethnic Brotherhood Alliance launched Operation 1027 in the neighboring town of Chin Shwe Haw, on the Chinese border, on Oct. 27 last year.
On Jan. 5, the alliance captured Hopang and Panlong and handed them over to Wa troops advancing from their Panghsang stronghold.
The UWSA, Myanmar’s most powerful ethnic army, has declared neutrality in conflicts between the junta and ethnic armed organizations (EAOs) and their allies. UWSA spokesperson U Nyi Rang told The Irrawaddy that the group could only establish administrations in towns through official agreements with the regime. “Otherwise, the town would be bombed,” he said.
Since the UWSA took over Hopang, residents have complained about having to scrape together money to pay the Wa administration. They said living in Hopang now feels like living under Chinese rule. “Hopang is a Chinese town now,” commented one resident.
The central government, backed by the Panlong Saopha (feudal lord), had kept a tight grip on Hopang, gateway to the frontier town of Chin Shwe Haw, since the 1960s.
The Myanmar National Democratic Alliance Army (also known as the Kokang Army) and the UWSA, which split from the Communist Party of Burma, signed a truce with General Khin Nyunt of the SLORC regime in 1989. The regime then designated Kokang as Special Region 1 and Wa region as Special Region 2. However, Hopang, in northern Wa territory, remained under regime control until January this year.
Ten months after Wa troops muscled their way into government offices in Hopang for the first time in 35 years, heavy taxation has become the talk of the town.
Hopang, like other towns across Myanmar, suffered the double whammy of COVID-19 and the 2021 coup.
Now, it is suffering fallout from intense fighting in northern Shan State, as China closes border crossings to force the Brotherhood Alliance to halt its offensive, resulting in soaring commodity prices and job losses. Adding to the strain on local communities are heavy taxes imposed by the Wa administration. Taxes on cars, motorbikes, labor, and households, among others, have been raised and must now be paid in Chinese currency. The household garbage tax has soared from 3,000 kyats (five yuan) before the Wa takeover to over 30,000 kyats (50 yuan) now.
The kyat has also lost much of its value since the coup, meaning taxes have become a heavy burden on grassroots communities.
Local businesses are also feeling the pinch. Hotels pay 1,500 yuan (900,000 kyats) per month in garbage taxes, while clinics pay 500 yuan (300,000 kyats). Residents are complaining that this is like having to feed UWSA troops.
High commodity prices and taxes have forced small businesses such as beauty parlors, betel vendors, and eateries to the brink of collapse. Those who evade taxes risk being fined 2,000 yuan (over 1.2 million kyats), forcing many to shut down.
UWSA soldiers, tax officers, and local officials go door-to-door collecting taxes.
“You can’t negotiate with them [to accept bribes] like under previous governments. They levy taxes in Chinese currency. If you don’t pay, your shop is closed,” a local business owner told The Irrawaddy.
One woman resident remarked: “The only good thing is we haven’t been bombed or had to flee from war like other towns.”
Chinese nationals from nearby conflict-hit towns such as Laukkai, Hsenwi, and Kunlong have flocked to the relative peace of Hopang. Meanwhile, Chinese investors have partnered with locals to open casinos, liquor shops, massage parlors, and brothels, turning the town into a miniature China, much to residents’ dismay.
The small town is home to Shan, Kachin, Wa, Burmese, and Lisu ethnic groups, with pagodas, monasteries, Christian churches, and a tight community where most residents known each other. Despite its proximity to China, Hopang had maintained its customs and traditions for decades until the Wa takeover.
New neighborhoods near Namtein Bridge linking Chin Shwe Haw and Hopang and on the road linking Wa-controlled Namti with Hopang are now hubs for bustling gambling dens.
Gambling dens and prostitution are now “mushrooming”, said a resident who has lived in Hopang for more than 40 years.
“None of these existed before the Wa takeover. They were only present in Laukkai and Chin Shwe Haw, where Hopang residents sought work. But now all sorts of bad things have come to Hopang under Wa rule. Betting on football and two- and three-digit lotteries have become legal now.”
“They allow everything except drugs and arms,” he added.
While older residents are especially unhappy with the recent changes, the UWSA is profiting handsomely from a surge in garbage tax revenue alone. However, a resident told The Irrawaddy there had been no noticeable improvement in public services under Wa rule.
Locals also expressed dismay over the UWSA’s first public trial and execution in Hopang, on Oct. 30, and the recent establishment of militias.
Hopang residents are aware of public death sentences being handed out in Kokang-controlled Laukkai and Wa-controlled Namtein, but are concerned about the potential impact on their ethnically diverse town.
“Residents were summoned to witness the trial. The culprit was taken to the cemetery and shot, with the body burned afterwards,” said a resident.
Public trial-executions are not a feature of Myanmar’s legal system. The UWSA’s legal practices more closely resemble China’s judicial system, leading to criticisms. The Irrawaddy reached out to USWA spokesperson U Nyi Rang for comment but received no reply.
The UWSA has also been conscripting males aged 18 to 40 into the town’s militia, attracting criticism from local communities.
“They initially promised not to form a militia for two years, but it hasn’t even been a year. If you can’t serve, you must pay and send a substitute,” said a father of conscription-age sons.
Meanwhile, residents believe that if the junta’s proposed election takes place as planned, China might push the UWSA to hand over towns to the Myanmar military, allowing the junta to reclaim control. They accuse the UWSA of exploiting the opportunity to make as much money as possible in the meantime.
Locals report some minor improvements under Wa rule, including mandatory helmet use for motorcyclists, reduced theft and drug use, plus health checks for workers in hotels, massage parlors, and brothels. “But one drawback is that the health checks are quite expensive”,” said a Hopang resident.
