One army officer, who did not reveal his name, said there may soon be heavy fighting. Witnesses have reported regular sightings of military conveys carrying weapons, equipment and soldiers arriving in the region. Kokang is under martial law.
One army source said military intelligence has reported that the rebels had planned to control the Laukkaing region before the Chinese New Year began on Thursday. In response to that information soldiers from 11, 33 and 77 Light Infantry Divisions were deployed.
On Wednesday, no one was allowed to enter Laukkaing. Due to security concerns, pedestrians and vehicles were only allowed to use Lashio-Kunlong motor road from 5 am to 5 pm.
A senior officer explained that "the Kokang rebel group started its attack with the first bomb attack on Kunlong suspension bridge last April. Over the last two years, Kokang rebels have infiltrated nearby regions, including the conflict-affected regions."
Fighting has been reported in Chinshwehaw Township, and gun fire has been heard in Narti. Local residents say they fear an escalation of fighting in Laukkaing, Chinshwehaw and Kunlong. The majority of residents in Laukkaing and its nearby regions are Mainland-born Chinese while many Internally Displaced Persons (IDPs) are Myanmar workers. These workers flocked to the region to earn money working in sugarcane harvesting, poultry producing, gambling and drug trading.
There have been increasing numbers of reports of civilians being killed or wounded since the fighting began 10 days ago. More than 20 people dead of gunshot wounds were discovered in Laukkaing, Kyi Myint and other witnesses from the area said.
"I saw 17 dead people near the seven-tiered building," Kyi Myint said. "And all dead bodies are covered with sheets. I also saw at least five dead bodies near the gambling place."
Civilians have also been fired on elsewhere. The military said Kokang rebels on Tuesday fired on a vehicle carrying IDPs, leaving one dead and one wounded and also attacked a rescue convoy, injuring two Red Cross workers. Both incidents occurred between Laukkaing and Chinshwehaw. Rebels deny they are behind the attacks.
"We were fired on by the rebels near Lonehtan village at around 6 pm, rescue team member Ma Chit Mi said. "One was dead and one injured in the attack. We could send the injured to the hospital only in the morning."
The middle-aged victim killed in the attack is a sugarcane worker from Magway Region, and the injured victim, 20 from Lashio, works in gambling, he said, adding that the car carrying the IDPs was abandoned and its passengers continued to Chinshwehaw by foot.
The township Red Cross has now temporarily ceased rescue operations in wake of the worsening situation and the attack on its convoy.
"We have reported the rebel attacks on the Red Cross members to the regional government and will inform other organisations," a Red Cross member said. "We stopped our rescue operations based on the circumstances.
"The situation may become worse as the rebels attack even the Red Cross members. But we will resume our rescue operations based on the circumstances. About 1,000 workers have been left stranded in Laukkaing and near the China-Myanmar border."
The Red Cross is attempting to coordinate with the army to rescue stranded workers in Namhsam near the border. Due to the ongoing fighting, residents are fleeing their regions, and many migrant workers are going back home. Some victims take refuge in Mansu monastery and the relief camps in Lashio.
Meanwhile, China has opened refugee camps on its side of the border, say those attempting to rescue civilians caught in the middle of the battles. Witnesses also report that China have increased its border guard force.
Heavily armed vehicles and Chinese soldiers have been seen at Chinshwehaw near the border, they say, adding that they have erected their national flag.