Fighting between the junta and the Arakan Army (AA) in Arakan (Rakhine) State’s Kyaukphyu Township, which is home to Chinese investment projects, resumed on 21 July 2025 following a pause since 10 July.
The AA controls nearly all of Kyaukphyu Township. The junta only controls Kyaukphyu City, a 10-mile radius around the city including about 12 villages, Dhanyawadi Naval Base south of Kyaukphyu City, Maday Island where China is trying to set up a deep sea port and most of the Kyaukphyu Economic Zone south of Kyaukphyu City, where there are other Chinese backed infrastructure projects.
The junta used the pause in fighting between 10 and 21 July to bring troop reinforcements into Kyaukphyu Township via sea routes. Then, on 21 July, the junta resumed launching airstrikes and firing artillery at AA positions in Kyaukphyu Township whilst resuming ground offensives against some AA positions in the township.
A Kyaukphyu Township resident said: “Fighting in Kyaukphyu Township had been nearly silent since 10 July, but clashes have flared up again recently, especially as the junta has resumed operations and begun using aircraft and drones for bombing strikes.”
On 21 July junta columns targeted AA-held Kyakphyu Township villages near the Dhanyawadi naval base , such as Kyet Tain, Kalabar, and Simaw whilst launching airstrikes on other areas of the township.
On the evening of 21 July, junta Infantry Battalion (IB) 34 fired two artillery shells—one landed near the May Phone Moh Hotel in Kyaukphyu City’s Asoeya Ward, and the other struck the area between Ngalapway and Taungyin wards, also in Kyaukphyu City.
In the very early hours of 22 July, at about 12:00 am, a junta airstrike on a monastery in Kyaukphyu Township’s Kyaukpyauk Village injured a displaced monk who was sheltering there and damaged the monastery building and the ordination hall.
Later in the day on 22 July, at around 5:30 pm, a junta fighter jet dropped five bombs on Kalabar Village in Kyuakphyu Township.
One of the bombs exploded in a crop field outside the village. Shrapnel from the bomb hit U Maung Than Shwe, a 55-year-old Kalabar villager, in the left side of his chest, as he was returning from herding cattle.
Also, on 22 July, at about 12:00 am, a junta airstrike on a monastery in Kyaukphyu Township’s Kyaukpyauk Village injured a displaced monk who was sheltering there and also damaged the monastery building and ordination hall.
An Arakan State based military analyst said: “The military situation in Kyaukphyu Township has been going in waves, ramping up and then cooling down, several times already. We’re also seeing the junta rely more and more on its air superiority. Unlike other parts of Arakan State, Kyaukphyu City has Chinese interests, so whenever the AA considers stepping up its offensive there, it faces some obstacles. But no matter what, the AA is definitely going to capture Kyaukphyu Township, including the city. I’m very sure of that.”
The AA already controls 14 townships in Arakan State and is currently attempting to capture both Sittwe City, the state capital, and Kyaukphyu City.
Both cities are home to Chinese investment projects, so the junta has deployed large numbers of army and navy personnel to protect the cities.
According to the aforementioned military analyst taking control Kyaukphyu and Sittwe cities could be the final steps in the AA’s military objectives, but it could be hard because the junta will fiercely defend the two cities.
