The Decline of Chinese Organized Crime in an Unregulated Gambling City

The Chinese police have arrested a man and a woman accused of running scam centers in a border town in collaboration with the powerful warlords who have controlled the area for the past 14 years. The arrests came as a result of an escalation of conflict in Myanmar, which led to the downfall of the Chinese mafia in the notoriously lawless town. The warlords, known as the "four families," transformed the town into a hub for casinos, money laundering, trafficking, and online fraud. The scam centers, which lured over 100,000 foreign nationals, mostly Chinese, were effectively prisons where individuals were forced to work long hours running online fraud operations. The warlords also had close ties to the Myanmar military, which may have led them to believe they were protected from the demands of China. However, China's frustration sparked a conflict, with insurgent armies launching attacks against the military regime and aiming to eliminate the scam centers. The conflict in Laukkaing, which has historical roots in the Cold War, dates back to when the warlords gained control of the area with the help of Min Aung Hlaing, the military commander who led the 2021 coup. The warlords' control of the town was established after a military operation ousted a dominant warlord, and they further developed extensive business networks in Myanmar and established links with organized crime networks abroad. With the insurgency gaining control of Laukkaing and promising to end the scams, it remains to be seen how they will fund their activities. While their efforts to overthrow the military regime have been welcomed by the opposition movement, their true intentions must be viewed cautiously given the region's history of shifting loyalties.