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Facing telecom fraud, China is clearing out criminal gangs operating in northern Myanmar.

At the end of January 2024, an era known for the dominance of the "Four Great Families" in the Kokang region came to an end.


Core figures like Bai Suocheng and Liu A Bao were extradited by Myanmar authorities to Kunming and subsequently handed over to China for processing.

This operation marked China's renewed large-scale crackdown on criminal groups in northern Myanmar, the second such action since the late 20th century.


As early as then, Kun Sa, known as the "Drug King," was defeated in a multinational anti-drug operation led by China.


However, in the past decade, with the rise of online gambling and telecommunications fraud, criminal activities have shifted to northern Myanmar.

China had diplomatically requested other countries to clear out telecommunications fraud syndicates, leading these groups to relocate to northern Myanmar, triggering China's second offensive against criminal groups in the region.


In autumn 2023, during the Kokang Alliance's counteroffensive, China exerted pressure on Myanmar, ultimately eliminating the "Four Great Families" completely.


Following closely, regions like Wa State vigorously cracked down on telecommunications fraud syndicates, nearly eradicating such activities in northern Myanmar.

The international community has acknowledged China's success in combating telecommunications fraud. Even people in the United States have expressed admiration for the Chinese government's determination and efforts, contrasting it with what is seen as temporary measures towards Mexican drug cartels.


Similar to China's actions in East Asia, the United States faces troublesome neighbors to the south, particularly Mexico.

Mexico supplies marijuana, cocaine, and methamphetamine, meeting the demand of millions of American drug users, creating a multibillion-dollar market.


Mexican drug lords have enriched themselves through these activities, leading to widespread drug-related agriculture, trafficking, and armed operations involving millions.


In recent decades, drug issues in the United States have sparked increasing crime and social problems, yet America's responses have seemed inadequate.


During the mid-Cold War period, the United States launched a "war on drugs" against South American narcotics, successfully eliminating trafficking groups in countries like Colombia and Peru.

However, today's America, despite its capabilities, seems powerless against Mexican drug cartels.


The Mexican government has also attempted its own "war on drugs," but these efforts have ultimately failed.


The inability to address drug issues has led people to question typical signs of American decline.


In contrast, while China has successfully eliminated criminal groups in northern Myanmar multiple times, why do Mexican drug cartels remain so rampant?


Although both the United States and Mexico have attempted to tackle drug issues, why does Mexico's drug problem persist?

The harsh geographical conditions and poverty in northern Myanmar have long driven local people to survive through crime.


This situation has created a vicious cycle in the region, spawning criminal groups affecting multiple countries.


In recent years, telecommunications fraud in northern Myanmar has become increasingly rampant, extensively documented in history.


As an "outlaw territory" beyond government control, Myanmar's central government has been unable to effectively manage these issues, allowing lawless elements from across the Southeast Asia peninsula to congregate.


As the largest neighboring country to northern Myanmar, China often faces the brunt when problems arise there.

In the late 20th century, heroin from northern Myanmar flooded western China, causing severe societal damage and even establishing drug lord autonomies like the notorious Pingyuan Street.


Later, China actively supervised anti-drug operations in northern Myanmar, urging local warlords to manage drug bans, distributing agricultural subsidies, establishing centralized detox centers, and lowering prices to combat the issue, thereby reducing the impact of drug activities.


However, compared to China, the United States' anti-drug actions in South America have been more violent.


During the Cold War, the United States waged a "war on drugs," forcefully entering South American countries to eliminate drug trafficking groups. While effective, this approach also drew strong resentment from other nations, and South Americans still harbor dissatisfaction towards US hegemonic behavior.


In contrast, the Chinese government has adopted a gentler approach, albeit at greater cost but with less harm to local populations.

Over decades, attitudes towards China in northern Myanmar, from officials to ordinary people, have gradually become friendly and even close.


Entering the 21st century, infrastructure in northern Myanmar such as Wa State and Kokang is largely similar to China's, including electricity, telecommunications networks, and currency systems.


While these measures have promoted regional development and social stability, they have also opened doors to subsequent online gambling and telecommunications fraud activities.


These activities expanded rapidly after the rapid development of mobile payments and became uncontrollable after 2020.


China had diplomatically urged the Myanmar government to manage this issue, but the situation became more complicated after the 2021 coup in Myanmar.

The military government adopted a laissez-faire attitude towards telecommunications fraud, exacerbating the situation.


In this context, China's government still leads through diplomatic means, organizing the "China-Myanmar-Thailand Joint Operation Against Telecommunications Fraud" in 2023.


However, due to significant resistance from entrenched interest groups within Myanmar, these actions have been difficult to effectively advance.


In October 2023, the Kokang Alliance suddenly counterattacked Kokang, defeating Kokang militias and reinforcements from the Myanmar army with powerful force.


While it is widely believed that China supported the Kokang Alliance behind the scenes, the Chinese government has denied this and no reliable evidence shows China supported the Kokang Alliance.

Overall, China used a window of opportunity to pressure the Myanmar government, rather than resorting to force.


China applied economic and diplomatic pressure on Myanmar, leveraging its decades-long positive image and cultural influence.


After all, China is Myanmar's primary economic partner and largest export market, making this economic pressure impossible for the Myanmar government to ignore.


Furthermore, telecommunications fraud severely harms public interests, forcing the military government to compromise by handing over the "Four Great Families" to maintain internal stability.

While the collapse of telecommunications fraud in northern Myanmar was ultimately due to the Kokang Alliance's counterattack, the fundamental reason lies in China's long-term economic strength and cultural influence.


In today's world, influencing regions through economic power is feasible, as seen with France in West Africa, the United States in Central and South America, and Australia in Oceania. However, currently, China seems to be the only country capable of achieving the latter.

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