Three Pagoda Pass (Payathonzu) town, located on the Thailand-Myanmar border inside Karen State, has seen many Chinese working in telecom scamming (Zhapian) businesses cross the border from Thailand, according to locals at a time when illegal gambling and trafficking activities are expanding in the region.

A local resident who wished to remain anonymous, reported a significant surge in new gambling establishments in Three Pagoda Pass, following the arrival of the major influx of new Chinese residents.

The Karen National Army (KNA), formerly known as the Border Guard Force (BGF) in control of Myawaddy town on the Thailand-Myanmar border, has set a five-month deadline for all Chinese Zhapian operatives operating in Myawaddy to leave the area.

This may have spurred a number of Chinese Zhapian operatives to prepare for a gradual relocation from Myawaddy to Three Pagoda Pass, predominantly controlled by a Democratic Karen Benevolent Army DKBA-5 ( A splinter group that has broken away from the Junta-aligned DKBA.)

Thousands of Chinese are now occupying guesthouses and hotels within the town, securing rentals for houses in the downtown area at favorable rates, as they gear up to establish illegal gambling hubs and casinos.

Chinese nationals are purchasing land in the Dhamma Ghiri foothills at favorable prices with the help of some local DKBA-5,and preparing to construct new flophouses and buildings to base their operations. Locals widely speculate that the buildings under construction will be used for telecom scamming activities.

In Three Pagoda Pass town, almost all the houses in a wide area of No. 4 Ward have   been  converted into casinos. Zhapian operatives who migrated to Three Pagoda Pass pay  DKBA-5 a substantial monthly fee, and in return, DKBA-5 ensures their security. Little is known about the operations or objectives of DKBA- 5.

The Chinese nationals who moved into the town en masse previously operated by Zhapiand  casino  businesses along the banks of the Moei (Thaungyin) River in Myawaddy town,Three Pagoda Pass locals said.

During Operation 1027, the Three Brotherhood Alliance effectively cracked down on Zhapian operations along the China border in Northern Shan State. However many of these criminal businesses and illegal gambling operations are now expanding in areas of the Thai- Myanmar border in Karen State.