Kokang has been ruled since 1989 by the leader of the MNDAA,
Peng Jiasheng (also known as Pheung Kya-shin, Its population was in 2005–2006 about} 70 per cent
Chinese Kokang, 12 per cent
Paulang, 3 percent of each the
Miao and
Lisu and 2 per cent
Wa. Until 2003, the MNDAA produced
opium but they stopped producing it under Chinese and Burmese pressure. Two years later the Burmese government declared that poppy growing in the Shan State would be illegal. But even after that, there are claims that Kokang is still a center of illegal drug trading. Tensions came to a head on 8 August 2009 when the junta military, acting on a tip-off from China, moved into the region for a raid on a gun factory suspected of being a drug front and on Kokang leader Pheung's home. This confrontation, according to the newspaper
Shan Herald, was only a "stand-off", with no shots being fired; nevertheless, it triggered a mass exodus of locals who were worried about the possibility of violence. Chinese officials had to intervene in the face-off, and by 17 August officials claimed that the situation in Kokang was "normal" again. On 24 August, junta troops captured and occupied Laukkai "without firing a shot". On 27 August, the Myanmar National Democratic Alliance Army began to open fire on junta troops outside the city; the
United Wa State Army, Myanmar's largest ethnic military force, was also involved in the fighting, as was the
National Democratic Alliance Army (also known as the Mong La Army). On 27 and 28 there were more battles in the villages of
Yan Lon Kyaik and
Chinshwehaw, near the Chinese border. Kokang soldiers interviewed in China after surrendering also said they had been overrun. While the Kokang army appears to have been routed, the larger United Wa State Army was still active, and
Al Jazeera reported that the government was requesting reinforcements to deal with them; The government issued a statement on 30 August claiming that the fighting had ended, The
Myanmar Army's operation in the incident was overseen by
Min Aung Hlaing and he was credited for it by the junta. ==Casualties and refugees==