Santikhiri's early history centered on the Golden Triangle's opium trade, in which its distinctive population – the "lost army" of the Republic of China Army's 93rd Division – became involved. At the conclusion of the Chinese Civil War in 1949, some remnants of the anti-communist Kuomintang (KMT) forces refused to surrender, including the 278th Regiment of the 93rd Division and the 709th Regiment of the 237th Division (led by General Li Kuo-hui). The troops fought their way out of Yunnan in south-western China, and its soldiers lived in Burma's (now Myanmar) jungles. The army grew and part of it returned to Taiwan under international pressure. The remaining troops were led by Gen Tuan Shi-wen (also known as Chiwan Khamlue) and sought asylum in Mae Salong later. In exchange for their asylum, they fought for Thailand until 1982, helping to counter the communist insurgency on the Thai frontier. In reward, the Thai government granted citizenship to most of the KMT soldiers and their families.