Under Myanmar government

Following the seizure of Laukkai from ethnic armies in 2009, the military installed a pro-junta militia. The militia subsequently grew rich off the production of drugs, and off gambling and prostitution to Chinese tourists. This gave rise to online scam compounds ran by trafficked people mainly from China. The Strait Times reported in 2023 that around 40 scam compounds could be operating around Laukkai.^[6]

On 17 February 2015, Myanmar president Thein Sein declared a state of emergency three-month period of martial law in Kokang in response to fighting between government troops and the Myanmar National Democratic Alliance Army, a rebel group.^[10] The curfew was extended on 9 September 2019.^[11]

On 6 March 2017, members of the Myanmar National Democratic Alliance Army (MNDAA) raided the Fully Light, Kyinfu, and Kyin Kyan casinos in Laukkai. The three casinos were owned by the rival Kokang Border Guard Force. The raid resulted in the death of one person, and the capture of tens of millions of dollars.^[12]

1020 incident

In the early hours of 20 October 2023, a rescue attempt [zh] for the hundreds of people forced to work at the Crouching Tiger villa of syndicate leader Ming Xuechang went awry, with Chinese media reporting that multiple Chinese citizens were shot and killed by guards while attempting to escape the compound. This incident has since been credited with forcing China to allow anti-junta forces to begin Operation 1027.^[13][14][15]

Operation 1027

On 27 October 2023, the Three Brotherhood Alliance launched a new offensive against the Tatmadaw in northern Shan State. The offensive saw the MNDAA make gains in the Kokang, with the goal of recapturing Laukkai since its loss in 2009. On 11 and 12 November, the MNDAA started shelling Laukkai,^[7] and eventually ended up surrounding the city on 14 November.^[6] On 12 November, all 127 members of Light Infantry Battalion 129 surrendered to the MNDAA with their families near Laukkai in Konkyan.^[16]

Due to Laukkai's position as a major area for scams, the MNDAA said that it would hand over any captured scam bosses to China.^[6] The MNDAA also issued orders to its forces to protect foreigners, rescue kidnapped victims, and to protect Chinese businesses and the China-Myanmar pipeline project.^[17]

Since the MNDAA began closing in onto Laukkai, the city has seen a mass exodus.^[7] In late November, the MNDAA opened a humanitarian corridor for migrant workers in Laukkai to flee to Lashio through Laukkaing and Kunlong townships, and Wa state. The corridor was however not used for ethnic Kokang people. Many Kokangs fled towards the Chinese border, but had tear gas fired on them by the Chinese authorities.^[18]

On 6 December, the MNDAA captured the stragetic Four Buddhist Statues Hill after three days of fighting against the Tatmadaw. The pagoda is located on a hill overlooking Laukkai and was the junta's last outpost before Laukkai.^[19][20]

On 15 December, a temporary ceasefire was mediated by China between the Tatmadaw and the MNDAA in Kunming. China also issued arrest warrants for key members of the main families in Laukkai on 10 December, alleging that they were the ringleaders of telecom and online scams. This included the region's former chairman, Bai Suocheng.^[21] The ceasefire ended on 18 December after the junta launched airstrikes on a base controlled by the MNDAA.^[22] Following this, the MNDAA captured the Yanlonkyaing border gate on the Chinese border north of Laukkai on 19 December.^[23][24][25]

On 28 December it was reported that "most" of Laukkai was now under MNDAA control, with junta forces largely abandoning the city.^[26] The MNDAA gained full control of Laukkai following a mass surrender of the last junta forces in the city on 5 January 2024.^[27][28]