The sight of tall, shiny buildings emerging from the cornfields on the Myanmar side of the Moei river is so striking that one might question its reality, finding themselves blinking in disbelief.
Eight years ago, the area in Karen State was a desolate landscape with only trees, rudimentary cement structures, and entrenched civil conflict, rendering it one of the most impoverished regions on the planet. Today, a small city named Shwe Kokko, or Golden Raintree, has materialized like a mirage along the border with Thailand. However, this city stands accused of being a hub of deceit, housing a dangerous convergence of fraud, money laundering, and human trafficking. Its creator, She Zhijiang, currently sits in a Bangkok prison, awaiting extradition to China.
Contrary to the sinister reputation that shrouds Shwe Kokko, She Zhijiang’s company, Yatai, portrays a different narrative in its promotional materials – depicting the city as a luxurious resort destination, a safe haven for affluent Chinese vacationers.
The saga of Shwe Kokko symbolizes the unchecked ambition that has surged out of China in recent decades. Zhijiang envisioned this dazzling city as his escape from the murky world of scams and gambling he once inhabited. However, his grand vision has drawn the scrutiny of Beijing, which is determined to eradicate fraudulent activities along the Thai-Myanmar border that increasingly target Chinese nationals.
The negative publicity surrounding the scams has also adversely impacted Thai tourism, prompting Thailand to crack down on illegal activities by cutting off power to compounds near the border, enforcing stricter banking regulations, and vowing to deny visas to those suspected of exploiting Thailand as a transit point.
In the aftermath of the coup and ongoing turmoil in Myanmar, Shwe Kokko finds itself isolated and struggling to attract the investments and visitors necessary for its survival.
Yatai is attempting to salvage the city’s tainted image by allowing journalists to visit, hoping that more positive coverage may lead to Zhijiang’s release from incarceration.
The BBC was extended an invitation to explore Shwe Kokko, a journey that proved challenging. Since its construction began in 2017, Shwe Kokko has been off-limits to casual visitors. Access became even more restricted as Myanmar’s civil conflict escalated following the military coup in 2021. The journey from Yangon, Myanmar’s commercial hub, takes three days through numerous checkpoints, blocked roads, and the looming threat of armed conflicts. Crossing over from Thailand is quicker but requires careful navigation to evade Thai law enforcement patrols.
During the tour guided by Zhijiang’s associates, the focus was on the city’s newly paved streets, opulent villas, and lush greenery. Our guide, Wang Fugui, claimed to be a former police officer from Guangxi, China, who was imprisoned in Thailand on what he insists were false fraud charges. In prison, he forged a close bond with Zhij
During our time in Shwe Kokko, we mainly encountered local Karen people, a group representing one of Myanmar’s ethnic minorities, who come to the area daily for work. Surprisingly, there were few overseas visitors, who are typically assumed to be the primary customers of the hotels and casinos in the region.
Yatai claims that there are no longer any scams operating in Shwe Kokko. They have put up large billboards in Chinese, Burmese, and English throughout the town, declaring that forced labor is prohibited and urging online businesses to leave. However, local residents quietly informed us that scam activities were still ongoing.
This illicit business originated about a decade ago amidst the unregulated Chinese investment boom on the Cambodian coast. It then shifted to the lawless areas along Myanmar’s border with China before settling along the Thai-Myanmar border. In the midst of this, the Myanmar military, various rebel groups, and warlords are engaged in a struggle for control over Karen State.
The scams have evolved into a lucrative multi-billion dollar industry, exploiting thousands of workers from different parts of the world who are confined within guarded compounds. These workers deceive individuals worldwide, with some engaging in the scheme voluntarily, while others are coerced into participating through abduction. Escapees have recounted horrific tales of torture and abuse, with some originating from Shwe Kokko.
We spoke with a young woman who had been employed in one of these scam centers shortly before our visit. She described her role in the modeling team, which primarily consisted of young women who establish online relationships with potential victims by sending intimate photos and engaging in conversations. The end goal is to persuade the victims to invest in get-rich-quick schemes, particularly in cryptocurrencies.
During our limited time in Shwe Kokko, our access was restricted to areas approved by Yatai. Despite this, it was evident that the scam operations had not ceased and likely remained the city’s primary enterprise. Requests to enter the newly constructed office buildings were denied on the grounds of privacy, and we were constantly accompanied by security personnel from the controlling militia group.
Although Yatai denied any involvement in hosting scam centers, a former employee dismissed these claims as false, asserting that the city’s high-rise buildings were indeed hubs for such illicit activities. Yatai’s founder, She Zhijiang, denied any association with telecom fraud and scams during a video call from Bangkok’s Remand Prison, where he is detained.
Yatai arranged for us to witness the conversation with She Zhijiang, insisting on showcasing his denial. However, only Mr. Wang was visible speaking on the call.
We had to keep ourselves hidden from the prison guards and relied on Mr. Wang to ask him our questions discreetly.
Little information is available about She Zhijiang, a Chinese entrepreneur from a small town whom Beijing accuses of being a criminal mastermind.
Born in a poor village in Hunan province, China, in 1982, She Zhijiang dropped out of school at 14 to learn computer coding. He later moved to the Philippines in his early 20s and ventured into illegal online gambling, where he began making money. Although convicted by a Chinese court in 2014 for operating an illegal lottery, he evaded arrest by staying overseas.
He invested in gambling ventures in Cambodia, obtained Cambodian citizenship, and used multiple aliases. In 2016, he partnered with Karen warlord Saw Chit Thu to develop a new city. She Zhijiang provided funds, Chinese construction equipment, and materials, while Saw Chit Thu and his armed fighters ensured security.
Promotional videos by Yatai advertised a $15 billion investment in Shwe Kokko, featuring luxurious hotels, casinos, and cyberparks. The project was portrayed as part of China’s Belt and Road Initiative (BRI), aimed at global development with Chinese investments and infrastructure.
In 2020, China distanced itself from She Zhijiang, prompting Myanmar to investigate Yatai for unauthorized construction and operating casinos before legalization. Following a Chinese request to Interpol, She Zhijiang was arrested in Bangkok in August 2022. Both he and Saw Chit Thu were sanctioned by the UK government for involvement in human trafficking.
She Zhijiang alleges being double-crossed by the Chinese government, claiming he established Yatai under the Ministry of State Security’s direction. He maintains that Shwe Kokko was part of the BRI and accuses China of turning against him for rejecting their control over the project.
While denying any wrongdoing by Yatai, She Zhijiang acknowledged a likelihood of scammers visiting Shwe Kokko due to its open access policy. He expressed difficulty in refusing customers and cited this as a vulnerability.
Despite Yatai’s control over Shwe Kokko, it seems implausible that they were unable to prevent scammers from infiltrating the city. The operation’s reliance on diesel generators for power and costly communication through Elon Musk’s Starlink system raise concerns about its viability.
Analysts like Jason Tower warn that Yatai’s attempts to portray Shwe Kokko as a safe city may not succeed, as they speculate on relocating illicit activities elsewhere. The future prospects of attracting legitimate businesses to Shwe Kokko remain uncertain.
“It’s simply unappealing. The economy will continue to operate as a fraudulent system.”
When granted access to a casino in Shwe Kokko, managed by a friendly Australian, we learned that they were planning to shut it down. The establishment was frequented only by local Karen individuals engaged in a popular arcade-style game involving shooting digital fish. Interviews were off-limits, and the back rooms with card and roulette tables were vacant.
The Australian manager explained that the casino, constructed six years ago, had been successful and profitable with only one or two in operation before the civil war. However, with nine now open, there weren’t enough customers. He disclosed that the real profit came from online gambling, the primary business in Shwe Kokko.
The exact earnings from online gambling and illicit activities like money laundering remain unknown, as these operations are typically run from the same locations by the same groups. Yatai, when asked about their profits, declined to disclose any specific figures, deeming it private information.
Despite Yatai’s invitation, we declined to visit their go-kart track, water park, and model farm. Additionally, we briefly glimpsed another casino during a breakfast invitation at Yatai’s luxury hotel, but entry was prohibited, and the casino appeared deserted. We were also shown a karaoke club with impressive private rooms adorned with digital screens displaying aquatic scenes, though it too seemed empty apart from a few staff members.
She Zhijiang has entrusted the management of Shwe Kokko to his protege, 31-year-old He Yingxiong, who resides with Wang Fugui in a grand villa overlooking the Moei River and guarded by Chinese security personnel. Despite different explanations, both She Zhijiang and Mr. He deny involvement in scams, asserting their role as property developers focused on infrastructure and supporting industries.
In this region of Myanmar lacking a formal legal system or government, control rests with armed groups along the Thai border, determining business operations to fund their conflicts. Yatai secured land at low costs due to the ongoing war. Karen human rights organizations have accused them of fraudulent activities.
“Shwe Kokko: A City of Scams and Struggles”
In the heart of Karen State lies Shwe Kokko, a place that embodies both promise and peril. Here, the clash between progress and exploitation plays out against a backdrop of lawlessness and deceit.
The story of Shwe Kokko is a complex one, shaped by the actions of individuals like Saw Chit Thu, who have driven the original inhabitants off their land with minimal compensation. Yet, amidst this turmoil, Yatai provides a glimmer of hope by offering much-needed jobs to the local population.
However, the allure of Karen State’s lawlessness has also attracted illegal businesses, tarnishing the image of Shwe Kokko. Recent headlines further darken this shadowy landscape.
One such story involves Wang Xing, a 22-year-old Chinese actor lured to Thailand under false pretenses of a movie shoot, only to be rescued from a scam center on the border. The subsequent uproar on Chinese social media prompted a joint operation by Thai and Chinese authorities to free him.
The repercussions of such scams have rippled beyond borders, with Chinese tourists now wary of visiting Thailand due to safety concerns. Rescue organizations report receiving distress calls from scam victims, hinting at a much larger crisis still unfolding along the border.
Yatai, the company at the center of the storm, seeks to distance itself from these illicit operations, emphasizing their commitment to ethical business practices. They point fingers at other compounds like KK Park and Dongmei, run by infamous figures like Wan Kuok Koi, known as Broken Tooth.
Among these shadows looms She Zhijiang, once a figure of influence in Thailand, now fallen from grace and imprisoned. His plight underscores the fragility of power in this unforgiving landscape.
In a candid interview, She Zhijiang expresses a newfound appreciation for human rights, lamenting the violations he now faces. He reflects on the stark contrast between his past privileges and current predicament, hinting at a deeper reckoning within himself and the system that once upheld him.
As the future of Shwe Kokko hangs in the balance, the actions of Thai and Chinese authorities will be pivotal in shaping its destiny. The crackdown on scams threatens to cut off the financial lifeline that sustains this city of illusions, raising questions about its survival beyond its sordid origins.
What lies ahead for Shwe Kokko remains uncertain, a tale still unfolding in the shadows of exploitation and redemption. Time will tell whether this city of scams can transcend its troubled past and emerge anew, or whether it is destined to fade into the annals of forgotten promises.
