The ethnic Arakan Army (AA) has advanced to within 5 kilometers of Kyaukphyu, a Chinese investment hub and one of only three towns in Rakhine State still under Myanmar junta control.
AA forces have seized key junta positions along the routes linking Kyaukphyu to the Danyawaddy naval base and Made Island, home to a Chinese-backed deep-sea port and petroleum pipelines. The ethnic army is now targeting junta outposts near Police Battalion No. 32, located just under 5 km from Kyaukphyu, according to a source close to the AA.
On Monday, the regime deployed jet fighters, Y-12 aircraft, and drones in aerial assaults on AA units near the police battalion, according to local residents. Warships from the Danyawaddy naval base have also been shelling the area since early June.
Kyaukphyu is defended by two junta light infantry battalions and one infantry battalion, stationed between the police battalion and the town. Additional junta positions are scattered across nearby villages and hilltops.
The AA is shelling Danyawaddy naval base, which has been cut off from other junta battalions in the region, according to local reports. Two other naval facilities lie near Danyawaddy.
Junta troops have also fortified outposts and bunkers around Chinese-backed projects – including a gas-fired power plant and an onshore gas terminal – with hundreds of reinforcements, weapons, ammunition, and food supplies.
Frontline sources report intermittent clashes in these areas.
However, sources said the AA has yet to launch a full-scale offensive despite skirmishes across Kyaukphyu Township,
Meanwhile, junta forces continue to use drones and paramotors to bomb AA-held territory.
AA sources allege that China is supporting the attacks by supplying modern drone technology along with expertise. “China provides the drones and helps operate them,” said one source.
In February, the regime passed the controversial Private Security Services Law, which permits Chinese private security firms to protect Beijing’s investments in Myanmar. Locals report that around 50 Chinese security troops arrived in Kyaukphyu Township around the end of February.
The AA now controls the entire southern portion of Kyaukphyu Township, adjacent to Ramree Township, having already seized 14 of Rakhine State’s 17 townships.
Kyaukphyu is strategically vital as the starting point of the China-Myanmar pipeline transporting natural gas to China’s Yunnan Province. It is also the site of a planned deep-sea port and special economic zone under China’s Belt and Road Initiative – projects that would give China direct access to the Indian Ocean, reducing its dependence on the Malacca Strait for energy imports.
“It appears the AA is attempting to seize the remaining junta-held towns, including Kyaukphyu and [the state capital] Sittwe,” said a military analyst based in Rakhine.
Sources close to the AA claim that many of the junta reinforcements deployed to Kyaukphyu are young men forcibly recruited under the Conscription Law. “About 80 percent of them are conscripts. We have also seen Muslim conscripts,” one source said.
The ongoing conflict has displaced more than 40,000 people in Kyaukphyu Township. Displaced communities are in urgent need of mosquito nets, clothing, and food, and many remain vulnerable to artillery attacks. Livelihoods are also under threat, as the junta has restricted fishing and locals dare not venture into forests to forage for food due to landmine risks.
Residents report that the regime has blocked all routes in and out of Kyaukphyu town. Villagers requiring medical attention must bribe officials to enter the town. Meanwhile, rising food prices have added to the hardship faced by civilians trapped in the conflict zone.
