Arakan Army and Battles of Kyaukphyu

English | Myanmar

Introduction

(a) Main Focus

A study of military and battles situations development on the Kyaukphyu front, their impacts on China-Myanmar strategic projects, and the socio-economic conditions of residents.

(b) Geographic Scope

Kyaukphyu Township, Arakan/Rakhine State, Myanmar

(c) Time Period

From February 2025 to June 2026

Background and Context

The military conflicts between the Arakan Army (AA) and the Myanmar Armed Forces (MAF) on the Kyaukphyu front, which began in early 2025, have continued with intense fighting through June 2026. Military operations by both sides to gain territorial control have become increasingly widespread. The prolonged and intensifying military situation continues to cause significant impacts on regional security, economic activities, and the socio-economic conditions of the population.

In particular, the clashes between the AA and the MAF have led to instability in ground security and shifts in territorial control. While these military operations escalate tensions, they have forced residents to flee to safer areas. In war-torn areas, locals are losing their homes and properties due to the MAF’s airstrikes, naval bombardments, and forced destruction. Furthermore, travel restrictions, skyrocketing commodity prices, and dwindling employment opportunities are significantly affecting the socio-economic livelihoods of the local people.

In addition, billions of dollars of Chinese investments are located in the Kyaukphyu region. The oil and natural gas pipeline projects are still operational, and there are ongoing plans to construct the Kyaukphyu Special Economic Zone (SEZ) and a deep-sea port, making the region a geopolitically sensitive flashpoint. There is an interdependent relationship between the military situation in the Kyaukphyu region and the ability of these regional economic projects to continue operations.

Therefore, this study is based on local media reports and residents' voices to analyze and assess the interconnected dynamics among military developments, Chinese project-related activities, and their impacts on the local socio-economic environment in the Kyaukphyu region.

Summary of Findings

February 2025

Arakan Army Launches Offensives Against Kyaukphyu Dhanyawadi Naval Base and Police Battalion (32)

Starting February 21, 2025, the Arakan Army (AA) launched an offensive against the Dhanyawadi Naval Base in Kyaukphyu Township. By February 26, the AA simultaneously attacked Police Battalion (32) and the Say Maw village outpost located near the naval base, triggering a series of intense clashes. During the battles, the military troops deployed heavy artillery, drones, air support, and naval gunfire. Local media reported that continuous bombardments into villages near the naval base resulted in civilian casualties.

Reports Emerge of Chinese Armed Mercenary Groups Providing Security to Protect Chinese Projects in Kyaukphyu

From late February 2025 onward, reports surfaced that 27 personnel from a Chinese armed mercenary group had established a base at the Power China plant in Gone Chein village, Kyaukphyu Township. They are reportedly responsible for securing the plant and other Chinese investment projects, as well as security upgrades such as installing CCTV networks and bulletproof glass.

Military Council Pressures for SEZ and Deep-Sea Port Implementation Amid Kyaukphyu Clashes

Despite the ongoing clashes between the AA and the Military Council in Kyaukphyu, the Military Council is preparing to push forward with the Kyaukphyu Special Economic Zone (SEZ) and Deep-Sea Port project, a joint venture with the Chinese state-owned enterprise CITIC. The project operates under a 2020 agreement and a 2023 addendum, with the "Long Stop Date" set to expire this coming June. The Military Council has been exerting pressure to fulfill project implementation requirements within the specified timeframe. The project, valued at approximately USD 7.3 billion, spans over 4,200 acres in Kyaukphyu Township and includes a deep-sea port, industrial zones, and residential housing.

July 2025

The Health Department of the Arakkha People’s Government Launches Public Health Supervisory Training

On July 11th, 2025 the Health Department of the Arakkha People's Government announced the commencement of a Public Health Supervisory Training program. This eight-month course is designed to enhance the department's capacity to deliver public health services more effectively. Graduates will be formally appointed to positions within rural health departments based on staffing requirements.

March 2025

Chinese Projects on Maday Island Continue Operations Despite Military Tensions

Although intense fighting persists in Kyaukphyu Township, Chinese oil and gas projects on Maday Island continue to operate normally without any suspension of activities. Chinese oil tankers continue to dock at the oil storage and refinery facilities, and oil and natural gas transport through the pipelines remains ongoing. Residents assess that despite clashes the projects have been unaffected, suggesting possible behind-the-scenes .... Read More

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