United Wa State Army The United Wa State Army ( , ; ; abbreviated UWSA , also known as the " UWSP ( United Wa State Party ) " or " Red Wa " ) is an ethnic minority army of an estimated 30 , 000 Wa soldiers of Myanmar ' s Special Region No . 2 led by Bao Youxiang ( 鲍有祥 ) . The Government of Burma does not recognise Wa State , which is divided into divisions , states , and special regions . The UWSA is the military wing of the United Wa State Party ( UWSP ) , and was formed after the collapse of the Communist Party of Burma ( CPB ) in 1989 . UWSA announced its territory as Wa State Government Special Administrative Region on 1 January 2009 . Vice President is Xiao Minliang . The UWSA was founded and led by Chao Ngi Lai ( 1939 - 2009 ) and later Bao Youxiang , the UWSA is strongly supported by China , supporting more than it supports Myanmar . ( 鲍有祥 ) . The group ' s Deputy Commander - in - Chief is Zhao Zhongdang . Aung Myint is the spokesperson . Co - founder was Xuexian Ai . He formed the Wa National Council ( WNC ) with Hsang Maha Ngeun Wiang , his brother - in - law , in 1984 . His group was nucleus of UWSA 171 Military Region near the Thai border . He died at the age of 78 in Mandalay on 29 October 2011 . Ta Maha Hsang sponsored the famous Panglong Agreement " song composed by Sai Kham Leik and song by Sai Hsai Mao . Wa Supreme Court Chief is Li Zhao Guo . Deputy Chief of External Relationship Department is Sun Khun . UWSA is one of the 17 armed ceased fire groups that attended long National Convention orchestrated by Myanmar military . It has relationship with ULFA - ATF , an Assam resistant group based in Myanmar . Deployment . The United Wa State Army ( UWSA ) has 5 " divisions " deployed along the Thai - Burma border : On the China - Burma border are stationed another 3 " divisions " : It has 30 , 000 active service men with 10 , 000 auxiliary force . It is one of the largest cease fire groups . Monthly salary is only 60 CNY ( 7 . 5 USD ) . It has clashes with Thai Army in Mar - May 2002 . Territory . The towns of Panghsang and Mong Pawk are within the area of this special region . The UWSA negotiated a cease - fire agreement with the Burmese military in the 1990s , and currently backs a counterinsurgency strategy of the Myanmar Army against the Shan State Army - South ( SSA - S ) . The UWSA defied the military regime ' s recent demand to disarm and participate in the 2010 elections , and instead proposed to declare the territory under their control as a special autonomous region . According to 2008 constitution , 6 townships are designated as Wa Self - Administered Division . Those are Mongmao , Pangwaun , Namphan , Pangsang aka Pangkham , Hopang and Matman Township . Mong Pawk is not part of it . It is part of Mong Yang Township . UWSA strongly against to give away that area from its control because it serve as a link with its alliance NDAA . Hopang and Metman are not under UWSA control . UWSA announced its territory as Wa State Government Special Administrative Region in January , 2009 . Narcotics . On 17 April 1989 , ethnic Wa soldiers established the United Wa State Army and ended the long - running Communist insurgency in Burma . On 9 May 1989 , the Burmese government signed a cease - fire agreement with UWSA , formally ending the conflict . The cease - fire agreement has allowed the United Wa State Army to freely expand their logistical operations with the Burmese military , including the trafficking of drugs to neighboring Thailand and Laos . The United States government labeled the UWSA as a narcotic trafficking organization on May 29 , 2003 . On November 3 , 2005 , The Department of the Treasury ' s Office of Foreign Assets Control listed 11 individuals and 16 companies that were " part of the financial and commercial network of designated significant foreign narcotics trafficker Wei Hsueh - kang and the United Wa State Army ( UWSA ) . " The UWSA is said to be the largest drug - producing organization in Southeast Asia . The UWSP on its part blamed both the Ne Win military government and the CPB for using the Wa as " pawns in the violent destructive games " and encouraging them to grow the opium poppy . The opium poppy harvest had increased since the former drug baron and warlord Lo Hsing Han managed to rebuild his drug empire after he became the intermediary for cease - fire agreements between the military intelligence chief Khin Nyunt and the Kokang and Wa insurgents who had rebelled against and toppled the Communist leadership in 1989 . In addition to the traditional Golden Triangle export of opiates , production has diversified to methamphetamine , or " yaa baa " , which is not only much cheaper and easier to manufacture than heroin , but also more affordable . Thai authorities have denounced methamphetamine production , trafficking , and consumption as a threat to national security . It denied involvement in Mekong incident of 5 November 2011 . In recent years , poppy cultivation has declined in both northern Laos and the Wa region partly as a result of a ban imposed by the UWSP in 2005 . In 1999 , Bao You - Xiang ordered a forced relocation , away from the poppy fields , of six northern Wa districts south to mainly Shan and Lahu areas . The World Food Program ( WFP ) and China also provided emergency food assistance to former poppy farmers . Chinese criminal organisation s in the area however may have simply switched the production line from heroin to amphetamine - type stimulant s ( ATS ) such as " yaa baa " . Enterprise . Wei Hsueh - kang founded the Hong Pang Group in 1998 with revenues from the drug trade after taking advantage of the privileges offered in the cease - fire deal by Khin Nyunt . Its position in the country ' s economy , not just the Wa State , is reflected by the multitude of businesses it owns and controls in construction , agriculture , gems and minerals , petroleum , electronics and communications , distilleries and department stores . Hong Pang Group is based at Panghsang with offices also in Yangon , Mandalay , Lashio , Tachilek and Mawlamyine . UWSA also operate its own bank in the past . Ho Chun Ting , aka Aik Haw aka Hsiao Haw , the son - in - law of Bao You - Xiang , is the principal owner and managing director of Yangon Airways and chairman of Tetkham Co Ltd that runs a chain of hotels . Close to Khin Nyunt and several other generals in the junta , he was also involved in gems auctions and several large construction projects with the Yangon City Development Council . He was reported to have fled to Panghsang following the arrest of his known associates in a drug - related offence in January 2009 . Aik Haw was included in the Specially Designated Nationals and Blocked Persons list published by the US Treasury ' s Office of Foreign Assets Control on November 25 , 2008 . Former Thai Premier Thaksin and Thai military has business relationship with UWSA . Arms supply . According to " Jane ' s Intelligence Review " in April 2008 , China has become the main source of arms to the United Wa State Army , displacing traditional black market sources in South East Asia such as Thailand and Cambodia . A " Jane " ' s report in December 2008 stated that the UWSA had turned to arms production to supplement their income from arms and drug trafficking , and started a small arms production line for AK 47 s . Jane ' s reported in 2001 that the UWSA had acquired HN - 5 N Surface - to - air missile ( SAMs ) from China as part of the build - up near the Thai border where they were reported to be operating 40 - 50 laboratories manufacturing " yaa baa " . It is also the middleman between China arm manufacturers and other insurgent groups of Myanmar . By 2012 , Chinese support had increased to the point of supplying armored vehicles . On 29 April 2013 , Janes IHS reported that several Mil Mi - 17 helicopters armed with TY - 90 air - to - air missiles were supplied to UWSA by China . The allegations were dismissed by China , Thai military sources , other Myanmar ethnic sources and the UWSA themselves . Kokang incident . In August 2009 , the United Wa State Army became involved in a violent conflict with Burma ' s military junta , the Myanmar Armed Forces ( Tatmadaw ) . This was the largest outbreak of fighting between ethnic armies and government troops since the signing of the cease - fire 20 years earlier . In popular culture . Film . The " Flaming Dragon " gang in the movie Tropic Thunder can be viewed as a comedic , filmic depiction of the UWSA .