Kyi Sin
On 26 December 2023, the State Administration Council (SAC) military regime in Myanmar inked with China an addendum to the concession agreement for the Kyaukphyu Special Economic Zone (SEZ) and its deep-sea port.[1] This deep-sea port, coupled with the SEZ, is a critical component of the ambitious China-Myanmar Economic Corridor (CMEC).
This corridor is strategically designed to provide quick sea access for China’s landlocked western provinces, connecting them to the Bay of Bengal. The CMEC thus presents considerable strategic and economic value to China. The date of the addendum’s signature, however, has some significance. The SAC signed this agreement with China in the aftermath of Operation 1027, a surprise offensive launched by the Three Brotherhood Alliance (3BHA) — a coalition formed since 2019 by three leading ethnic armed organisations (EAOs), namely the Arakan Army (AA), the Myanmar National Democratic Alliance Army (MNDAA), and the Ta’ang National Liberation Army (TNLA) – in northern Shan State. Operation 1027 and its aftermath shifted the conflict dynamics in Myanmar’s ongoing civil war.[2] Even before and especially after Operation 1027, the AA has been gaining more ground and functional control in Rakhine State, where the Kyaukphyu SEZ is located. The AA is for the first time since its establishment in 2009, poised to wrest control of Rakhine from the SAC’s central administrative reach.[3]
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