Junta forces in Kyaukphyu Township, Rakhine State, have launched heavy artillery strikes in recent days, forcing residents from some 10 villages near Chinese investment sites to flee to safer areas. Despite no direct clashes with the Arakan Army (AA), junta forces at the Dhanyawadi and Ohn Kyi Kyun junta naval bases have launched heavy artillery and drone strikes, forcing residents from at least 10 villages to flee, a local resident told Myanmar Now. "They're attacking to prevent people from staying in those villages,” the source said. “They're close to Kyaukphyu Town. They're targeting these villages thinking that the AA might use them as a base to advance on Kyaukphyu Town.” While most residents of Kyaukphyu have fled to safer areas, about one-third of the town’s population remain trapped in the area, according to the same source.Clashes between the AA and Myanmar military have drawn closer to Chinese and foreign-owned development projects and pipelines. In January, the AA captured the China-Myanmar pipeline’s station in Ann, a significant blow to the regime. The military controls only the town centre, while the AA holds about 90% of the surrounding territory, a source said. Although the military maintains positions at Taung Maw Gyi naval base, their movements are severely restricted. Any attempt to leave these positions would likely trigger clashes. Despite the persistence of junta camps in Kyaukphyu, another local resident assessed that it wouldn't be difficult for the AA, which has been achieving continuous victories, to capture the town as they already have it surrounded. Kyaukphyu is a key location for Myanmar’s oil and gas pipeline network. The main control station for the nearly 800-kilometer pipeline, which runs through Rakhine State, Magway Region, Mandalay Region, and Shan State, begins at Ma Day Island in Kyaukphyu and connects to China’s Yunnan Province. Although much of the pipeline is under resistance control, the junta still retains its profits, as they operate the main control centre in Kyaukphyu Town. As of December 2024, the Arakan Army (AA) has gained control over 14 of Rakhine State's 17 townships, including key to such as Ann, Taungup, Maungdaw, and Gwa. The remaining townships under the junta's control are Sittwe, Kyaukpyu, and Munaung.