Myanmar Clashes Displace Thousands Near China-Backed Port Project

YANGON – Ongoing clashes between Myanmar’s military junta and the Arakan Army (AA) near a strategic China-backed port have forced 4,000 people to flee, a local aid worker reported on March 5.

Fighting has intensified in Rakhine state, where major infrastructure projects—funded by billions in Chinese investment—include oil pipelines, power plants, and transport links. The region has become a key battleground in Myanmar’s prolonged civil conflict, with ethnic minority groups and pro-democracy forces challenging the junta that seized power in 2021.

Since late February, hostilities have escalated around Kyaukphyu, the site of a planned deepwater port supported by China with an estimated US$9 billion (S$12.03 billion) investment. “People from at least 10 villages have been fleeing due to the ongoing clashes,” said Aung Aung, a representative from a local rescue committee. “Based on our data, around 4,000 people have been displaced, adding to a total of 15,000 in the area.”

While fighting has stalled progress on the port, Kyaukphyu also hosts a completed China-backed power plant, a natural gas pipeline, and a naval base. A humanitarian worker in Rakhine, who spoke anonymously, highlighted urgent needs for healthcare and medical aid among those displaced. Neither the junta nor the AA provided comments on the situation.

Rakhine state, bordering Bangladesh, is a crucial part of China’s Belt and Road Initiative, launched in 2013 to expand its trade network. However, control over these projects has become a major objective for both the junta—heavily reliant on China—and the AA, which has emerged as one of its strongest adversaries. In December, the AA declared full control over a key border region with Bangladesh, increasing pressure on the embattled junta.

According to United Nations data, over 3.5 million people are internally displaced across Myanmar, with more than 500,000 in Rakhine state alone.