Reports emerged in mid-July that the Myanmar National Democratic Alliance Army (MNDAA), a Kokang ethnic armed group, may be preparing to withdraw from Theinni (Hsenwi) Township in northern Shan State, following unusual military movements in the area.
On the morning of July 10, 2026, a significant number of MNDAA forces stationed in downtown Theinni and near Panlaw Village were observed relocating toward Sei U Village Tract along the Theinni–Laukkai highway, sparking intense speculation among locals.
“Kokang troops moved out carrying their weapons and gathered at a school in Sei U. After that, rumors spread that the MNDAA would gradually withdraw and junta troops would return to take over,” a town resident told SHAN. “However, others believe the troops were only temporarily relocating due to security concerns following a recent rocket attack in nearby Lashio.”
Despite the initial troop movements, some residents reported that MNDAA forces have since returned to their original positions in downtown Theinni.
Amid the speculation, the MNDAA convened meetings with Theinni residents during the second week of July to present its six-month performance report and clarify its administrative plans.
“The Kokang soldiers assured us they are not withdrawing,” another resident said. “MNDAA officials stated they would hand over day-to-day ward administrative functions to local civilians so civilian governance can resume, while the group continues to oversee administration and provide support from behind the scenes.”
Theinni has been under MNDAA control since late October 2023, when it was captured during the initial phase of Operation 1027—a major offensive launched by a coalition of ethnic armed organizations that inflicted heavy losses on the Myanmar military.
Since seizing the town, the MNDAA has expanded its administrative structure from four wards to six and established a functioning governance apparatus.
A political analyst based in Lashio, the largest city in northern Shan State, noted that the rumors of a withdrawal began immediately after an improvised rocket landed in junta-controlled Lashio on July 9. The perpetrator of the rocket attack remains unclear.
“The timing of these reports suggests an ongoing geopolitical struggle over territory,” the analyst said. “China is likely increasing pressure to reopen vital border trade routes, while the Myanmar military regime remains desperate to regain control of towns along the China-Myanmar trade corridor.”
Despite security tensions, the MNDAA has continued to advance local development.
Since early July, Theinni has received 24-hour electricity supplied by the MNDAA-administered Special Region (1) Water Supply and Electric Power Company.
According to The Kokang, an MNDAA-aligned media outlet, the round-the-clock power supply aims to stabilize the local economy, attract Chinese investors, and boost manufacturing businesses in the region.
