Shwe Kokko: A City Built on Scams

Shwe Kokko, a newly constructed city in Myanmar, presents a striking contrast to its surroundings. Rising from the cornfields along the Moei River, this city has emerged in a region long plagued by poverty and civil conflict. Once a barren landscape, it now boasts tall, shiny buildings and promises of luxury. However, beneath this glittering facade lies a troubling reality. Shwe Kokko is accused of being a hub for scams, human trafficking, and money laundering. The mastermind behind this ambitious project, She Zhijiang, currently sits in a Bangkok jail, awaiting extradition to China. This article explores the complex narrative of Shwe Kokko, its origins, and the ongoing issues that define its existence.

The Mirage of Shwe Kokko

Shwe Kokko, meaning “Golden Raintree,” is a city that seems to have sprung up overnight. Eight years ago, the area was largely undeveloped, characterized by trees and a few rudimentary structures. The region has been marred by a long-running civil war, making it one of the poorest areas in Myanmar. Yet, today, Shwe Kokko stands as a testament to ambition and investment, albeit with a dark twist.

The city was built by Yatai, a company owned by She Zhijiang, who envisioned it as a luxurious resort for Chinese tourists and wealthy individuals. Promotional videos depict Shwe Kokko as a safe haven, a stark contrast to the allegations of fraud and exploitation that surround it. Despite its ambitious plans, the city has struggled to attract the investment and visitors it needs to thrive. The ongoing civil unrest in Myanmar and increasing scrutiny from the Chinese government have further complicated its prospects.

Yatai’s attempts to reshape Shwe Kokko’s image include inviting journalists to showcase the city. However, many locals report that the scams and illegal activities continue unabated. The city, once a beacon of hope, now finds itself marooned in a war-torn region, with its future hanging in the balance.

Inside Shwe Kokko: A Forbidden City

Accessing Shwe Kokko is no easy feat. Since construction began in 2017, the city has been largely off-limits to casual visitors. The situation worsened after the military coup in Myanmar in 2021, making travel to the area fraught with challenges. A journey from Yangon, the country’s commercial hub, can take up to three days, involving numerous checkpoints and the risk of armed conflict. Crossing from Thailand is quicker but requires careful planning to avoid detection by local authorities.

Once inside, visitors are greeted by a city that resembles a provincial Chinese town. The streets are newly paved, and the buildings are adorned with Chinese characters. However, the reality of life in Shwe Kokko is far more complex. While Yatai promotes the city as a destination for the wealthy, most of the people seen on the streets are local Karen workers, who come daily to earn a living.

Despite Yatai’s claims that scams have been eradicated, whispers of ongoing fraudulent activities persist. Local residents report that scam operations remain active, often hidden behind the facade of legitimate businesses. The city has become a hub for a multi-billion-dollar scam industry, employing thousands of workers from various countries. Many of these workers are subjected to harsh conditions, with some even being abducted and forced into labor. The dark underbelly of Shwe Kokko stands in stark contrast to its intended image as a luxurious getaway.

The Man Behind the Curtain: She Zhijiang

She Zhijiang, the enigmatic figure behind Shwe Kokko, has a complicated history. Born in 1982 in a poor village in China’s Hunan province, he dropped out of school at 14 to learn computer coding. His early ventures into online gambling and illegal lotteries eventually led him to the Philippines, where he began to amass wealth. However, his criminal activities caught up with him, resulting in a conviction in China for running an illegal lottery.

In 2016, She struck a deal with a Karen warlord to build Shwe Kokko, promising a $15 billion investment. The city was marketed as part of China’s Belt and Road Initiative, aimed at enhancing infrastructure across Asia. However, as the project progressed, it attracted the attention of both the Chinese government and Myanmar authorities, leading to investigations into Yatai’s operations.

In August 2022, She was arrested in Bangkok at China’s request, accused of human trafficking and fraud. From his prison cell, he maintains that Yatai does not engage in scams, claiming that he is a victim of political maneuvering. His assertions, however, are met with skepticism, especially given the ongoing reports of scams operating within Shwe Kokko.

As She Zhijiang’s influence wanes, the future of Shwe Kokko remains uncertain. The city, once a symbol of ambition, now grapples with its identity as a center for illicit activities.

A Business in a War Zone

Shwe Kokko’s existence is intricately tied to the ongoing conflict in Myanmar. The lawlessness of the region has made it an attractive location for illegal businesses, including scams and online gambling. While Yatai promotes the city as a legitimate business hub, the reality is far more complicated.

During a visit to one of the casinos in Shwe Kokko, it became evident that the once-thriving establishment was struggling. The Australian manager noted that the casino had lost its appeal due to the proliferation of similar venues. The real money, he claimed, was now in online gambling, which operates in the shadows of the city’s more visible attractions.

Despite Yatai’s efforts to distance itself from the scam operations, the lines between legitimate and illegitimate businesses are blurred. Many of the same teams run both online gambling and scam operations, making it difficult to ascertain the true nature of Shwe Kokko’s economy. The company’s reluctance to disclose financial information raises further questions about its operations.

As the Thai and Chinese governments intensify their efforts to crack down on scams, Shwe Kokko faces an uncertain future. The city, once envisioned as a luxurious getaway, now stands as a stark reminder of the complexities of ambition, crime, and survival in a war-torn region. The fate of Shwe Kokko hangs in the balance, as it grapples with its identity and the consequences of its origins.

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