Why has Vaxtex Cotfab Limited (VCL) been underperforming recently - Free Market Analysis Group

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Why has Vaxtex Cotfab Limited (VCL) been underperforming recently ✌️【Financial Expert】✌️ Real-time global stock, futures, and forex data to help you master market dynamics. The impoverished Southeast Asian nation has long been a trouble spot on China’s southwestern border. For decades Beijing’s leaders have played a careful game of backing Myanmar’s military regimes – lending them much-needed economic, military and diplomatic support, including at the United Nations – whilst also maintaining close ties to powerful rebel militias along its borders.

But Beijing’s frustration has been building with Naypyidaw’s generals whoseized power in 2021, overthrowing a democratically elected government that Beijing had built close relations with, and resurrecting the kind of isolated junta rule that Myanmar’s people had spent decades living under.

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In recent months, that displeasure has reached new heights as the junta dragged its feet on a pressing security priority for Beijing: shutting down the infamous online scam centers that have proliferated along its border with Myanmar.

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In heavily guarded compounds controlled by local warlords, tens of thousands of people, mainly Chinese, have been trapped and forced by criminal gangs to defraud strangers with sophisticated schemes over the internet.

Beijing has pressed Myanmar’s military government to rein in the scam operations with little success.

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Powerful warlord families, backed by the junta and once deemed untouchable by the law, are now in the custody of Chinese police.

“China has been leveraging Operation 1027 in order to maximize pressure on the military regime to compel it to begin a crackdown on cross-border crime that targets Chinese nationals,” said Jason Tower, Myanmar country director of the United States Institute of Peace (USIP).

Last week, Beijing said it helped the junta broker a temporary ceasefire with the rebels, after arranging for the two sides to meet in China for peace talks.

But Beijing’s assistance has carried a heavy price tag – the downfall of the remaining crime families the junta had relied on to rule the border region.

China’s growing frustration with the junta over its failure to tackle the scam industry was not lost on the ethnic rebels as they planned their attack for October 27.

In announcing the offensive, the armed ethnic groups – collectively called the Three Brotherhood Alliance – cited the need to take out the massive scam operations as a major justification.

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China began publicly pushing the junta to crack down on cross-border crime targeting Chinese nationals in May, when then Foreign Minister Qin Gangvisited Myanmar’s capital Naypyidawand raised the issue with army chief Gen. Min Aung Hlaing.

“For that to fall on deaf ears for several months, and for the criminal activity to continue, I think it ultimately played a role in China giving some tacit support to Operation 1027,” said Tower, the expert at USIP.

For much of this year, Chinese officials have urged the ethnic armed groups to restrain from escalating the conflict and to sit down for negotiations with the military – which led to a few meetings between the two sides, according to Tower.

“This seems to have changed pretty dramatically after October. China’s frustration (with the junta) is ultimately what led to it lifting that pressure. And once that pressure was lifted, something like Operation 1027 became possible,” he said.

One key hub for the scam syndicates was Kokang, a region home to many ethnic Han Chinese and controlled by the Myanmar military through the Kokang Border Guard Force. The militia was established by junta chief Min Aung Hlaing to rule Kokang after he led a military operation in 2009 to oust the Myanmar National Democratic Alliance Army (MNDAA).

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Experts say a particularly brutal incident in Kokang’s capital Laukkaing, a glistening casino city bordering China’s Yunnan province that has descended in recent years into a lawless hub for internet fraud, was another major test of Beijing’s patience.

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Four undercover Chinese police officers were rumored to be among the victims – a claim that wasshared onlineby Hu Xijin, former editor-in-chief of state-run tabloid Global Times.

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“I think that was kind of the last straw that led to China more or less greenlighting this operation,” Tower said.

Four days after the launch of Operation 1027, China’s Minister of Public Security Wang Xiaohong arrived in Naypyidaw. In ameetingwith Min Aung Hlaing, the Chinese police chief said law enforcement agencies in both countries would strengthen cooperation to crack down on cyber scams and online gambling.

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Days later, the three relatives were handed over the border and taken into Chinese custody, while Ming reportedly took his own life before he could be arrested, according to China’s state broadcaster CCTV.

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“China has calculated that it is worth a short-term period of instability and conflict on the border in order to shut down the scam centers,” he said. “But I don’t think China wants this conflict to continue longer than necessary…(or) to spread wider than necessary.”

In public, China has repeatedly called for de-escalation of the conflict in Myanmar. Announcing the temporary ceasefire on Thursday, a spokesperson for China’s Foreign Ministry said Beijing had been making “relentless efforts to promote talks to end the fighting” since it broke out in October.

But experts say in practice, Beijing had taken a largely hands-off approach until earlier this month.

China’s sudden involvement in peace talks may reflect Beijing’s calculation shifting again, experts say. The rebel offensive in Shan was hugely successful – and other insurgent groups launched their own attacks elsewhere across Myanmar, spreading the junta’s already stretched forces even thinner.

“Chinese authorities likely did not expect that the operation would result in the complete disruption of the lucrative China-Myanmar border trade, nor did they expect that it would ripple across the entire country, causing the Myanmar military to lose hundreds of posts and suffer unprecedented battlefield losses,” said Tower.

Beijing is increasingly concerned that the prolonged disruption to border trade would deal a serious blow to the already struggling economy in southwest China, especially the border province of Yunnan; the ongoing conflict could also undermine China’s energy security, as many of its southwestern provinces rely on the China-Myanmar pipeline for access to oil and gas, according to Tower.

Opponents vow ‘beginning of the end’ for Myanmar’s junta as resistance launches nationwide offensive

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On December 10, the day before the military government revealed it held talks with the rebels with the help of China, the Chinese police issued a fresh batch of arrest warrants for 10 alleged “ringleaders” of Kokang’s online scams syndicates accused of fraud, murder and trafficking.

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Experts say China is effectively using the warrants to force the junta to quietly exit Kokang and hand the territory back to the MNDAA.

“These warrants put the Myanmar army in an extremely difficult position. As the Myanmar army cannot control Kokang without its Border Guard Force leaders, handing them over to the Chinese side amounts to surrendering Kokang over to the MNDAA and its allies,” Tower said.

Horsey at the International Crisis Group said the ceasefire could be the final act in MNDAA’s dramatic takeover of Kokang.

“The Myanmar military is now constrained from launching any counterattack, but able to safely withdraw its forces,” he said. “But there are many moving parts and whether this will result in a bloodless MNDAA takeover of Laukkaing remains to be seen.”

On Wednesday, the Three Brotherhood Alliance reaffirmed its commitment to defeat the military dictatorship. It made no mention of peace talks or a ceasefire.

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