Kyaukphyu: A Strategic and Troubled Region in Rakhine State

Kyaukphyu, a coastal town in Rakhine State, Myanmar, has become a focal point of both economic development and conflict in recent years. While the port project in the area has been largely stalled due to ongoing fighting, Kyaukphyu is also home to a completed China-backed power plant and natural gas pipeline, as well as a naval base. These infrastructure projects highlight the region’s strategic importance, both economically and militarily, for Myanmar and its international partners, particularly China.

The Humanitarian Crisis and Displacement

The ongoing conflict in Rakhine State has led to a severe humanitarian crisis, with millions of people displaced across the country. According to United Nations data, more than 3.5 million people are internally displaced in Myanmar, with over 500,000 of them in Rakhine State alone. A Rakhine-based charity leader, who spoke on condition of anonymity, emphasized the urgent need for healthcare and medicine for those displaced. The situation remains dire, with many displaced individuals lacking access to basic necessities, including medical care, food, and shelter.

China’s Belt and Road Initiative in Rakhine State

China has made significant investments in Rakhine State under its Belt and Road Initiative (BRI), a massive infrastructure development project launched in 2013 to expand its global trade influence. The BRI has facilitated the construction of key infrastructure projects in Kyaukphyu, including the power plant, gas pipeline, and naval base. These investments underscore China’s strategic interest in the region, particularly given its proximity to Bangladesh and its access to the Indian Ocean. For China, control of these projects is crucial for maintaining its economic and geopolitical influence in Southeast Asia.

Control of Projects: A Key Objective for Both the Junta and the AA

Control of the infrastructure projects in Kyaukphyu has emerged as a key objective for both the internationally isolated junta and the Arakan Army (AA), one of the junta’s most powerful adversaries. The junta, which seized power in a coup in 2021, has become increasingly reliant on China for economic and diplomatic support. Meanwhile, the AA, which seeks greater autonomy for Rakhine State, has also sought to gain control of these strategic assets. The competition for control of these projects has further complicated the conflict, with both sides trying to leverage their strategic importance for political and military gain.

The Arakan Army’s Growing Influence

The Arakan Army (AA) has been one of the most formidable opponents of the junta, and its influence in Rakhine State has grown significantly in recent years. In December, the AA claimed complete control of a key region along the Bangladesh border, further increasing the pressure on the junta, which is already battling opponents elsewhere in the country. The AA’s control of this region not only strengthens its position in the conflict but also underscores the fragmentation of power in Myanmar, where ethnic armed groups like the AA wield significant influence in their respective regions.

The Future of Rakhine State and Its Strategic Projects

The future of Rakhine State and its strategic projects remains uncertain, as the conflict between the junta and the AA continues to escalate. The humanitarian crisis, exacerbated by the displacement of hundreds of thousands of people, adds another layer of complexity to the situation. While China’s investments in the region under the Belt and Road Initiative have brought some economic benefits, the ongoing instability and competition for control of these projects threaten to undermine their long-term viability. For the people of Rakhine State, the hope for peace, stability, and access to basic necessities remains elusive, as the region continues to be a battleground for competing interests and agendas.