China’s planned ceasefire monitoring office in Lashio, the capital of northern Shan State, remains unopened more than a month after it forced the Myanmar National Democratic Alliance Army (MNDAA) to relinquish the city it liberated last year.
In April, China’s special envoy to Myanmar, Deng Xijun, personally supervised the handover of the northern Shan capital to the military regime. The plan for an agency to monitor the truce between the junta and ethnic army has been delayed, a source close to the MNDAA told The Irrawaddy.
“Though China has not yet opened a ceasefire monitoring office in the city, I heard it is remotely instructing both the regime and MNDAA to avoid military engagement. I think China is waiting to see how the situation unfolds because it still doesn’t trust the regime,” the source said.
The MNDAA is a member of the Brotherhood Alliance, which, alongside other resistance groups, launched the anti-regime Operation 1027 offensive across northern Shan State in October 2023.
The alliance seized most of northern Shan State and key trade routes with China. Lashio, which housed the junta’s Northeastern Command, fell last August.
Also delayed is the MNDAA’s plan to open a liaison office in Lashio headed by its local commander. The ethnic army currently runs a temporary liaison office in a village on the city’s outskirts, said the source.
“The MNDAA is still considering who to send and where to locate its office. Some comrades are unwilling to return to Lashio. It appears the MNDAA will have to renegotiate with the regime on this,” he said.
The junta has yet to reestablish its North-Eastern Command, with troops currently stationed at the Lashio University campus and other battalions in the town.
MNDAA forces remain in the surrounding countryside, running its administration based in Hopeik village. Patients in rural areas are being sent for treatment in MNDAA-controlled Hsenwi town.
After overseeing Lashio’s handover on April 22, the Chinese delegation returned to China the same day via the MNDAA-controlled Lashio-Hsenwi-Kunlong-Chin Shwe Haw road.
China then reopened its border with MNDAA-controlled territories, resuming goods exports and the supply of electricity and internet. China previously closed all border crossings with MNDAA-held to pressure the ethnic armed group into halting its offensives against the regime.
A female resident said the regime is still struggling to restore law and order in Lashio, with robberies and muggings rampant since its return.
“There have even been robberies near the police station. The regime has only been able to arrest thieves who stole power cables while doing nothing against armed robbers. Ordinary citizens dare not go outside at night,” she said.
Prices of necessities have also surged after the regime increased taxes, she added.
The regime has not moved to arrest teachers, medics, and administrators who worked under MNDAA rule. However, it has threatened to jail anyone who cooperates with armed groups.
Despite the junta’s return to Lashio, China’s border trade with Myanmar remains low key, as the MNDAA’s ally – the Ta’ang National Liberation Army – still controls the main trade hubs of Nawnghkio, Kyaukme and Hsipaw. The annual border trade, previously worth US$ 6 billion, between northern Shan State and Yunnan has been halted since the launch of Operation 1027 in October 2023.
