China Pressure Behind Myanmar Blackout

A Thai entity that exported electricity to Myanmar reportedly bowed to China by cutting power to two border cities that host casinos. The action was linked to China’s crackdown on capital flight and illegal gambling.

China Pressure Behind Myanmar Blackout

On June 5, a Thai enterprise that provided electricity to nearby Myanmar cut off power to two border towns that host casinos. Thai officials say those casinos allegedly host major organized crime operations.

The Associated Press reported that the casinos are located in autonomous development zones controlled by Chinese tycoons in cooperation with the Border Guard Force, a militia of the area’s ethnic Karen minority.

Last week, Thailand’s Provincial Electricity Authority (PEA) cut power to the two complexes in the cities of Shwe Kokko and Lay Kay Kaw in Kayin. The Chinese owner-investors reportedly lure foreigners with promises of jobs, then force them into virtual captivity in internet call centers. The complexes allegedly are involved in online scams as well as drug and human trafficking.

Thai Interior Minister Anupong Paochinda told reporters in Bangkok that the electricity was suspended because the contract expired and the government of Myanmar declined to extend it. But according to local media, the decision to end PEA’s contract was due to pressure from China to combat cross-border crime, online fraud and gambling.

As reported by the Manila Times, Myanmar’s “lawless eastern border” is a hub of Chinese investment, and Shwe Kokko has many hotels and casinos that target Chinese customers. The report added that power outages are common in Myanmar due to an outdated electricity grid, especially in the summer.

However, on May 31, Myanmar’s junta-appointed home minister met the Chinese ambassador to the country, reportedly to discuss “online fraud and gambling on the Myanmar-China and Myanmar-Thailand borders” and “enhancement of cooperation in the fight against transnational crimes.”
The AP says business in the two towns continue to operate with generators.

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