Northern Myanmar Poses a Challenge to China’s Critical Minerals Strategy

Wai Yan Phyo Naing and Lin Sae-phoo

Source Link

Amid the ongoing conflicts between Myanmar’s military junta and various ethnic armed groups, two recent meetings – one between representatives of the Kachin Independence Army and Chinese officials, and the other between the Myanmar junta and the Myanmar National Democratic Alliance Army (MNDAA) – have taken place in Yunnan, China, which borders northern Myanmar. China, acting not only as a mediator but also as a stakeholder, has been actively involved in the conflict developments in the northern and northeastern parts of Myanmar.

This neighboring country forms a crucial part of Beijing’s global strategy to secure access to critical minerals (rare earths and other minerals, including copper, lithium, nickel and cobalt, etc.) – particularly amid intensifying geostrategic competition with the United States over renewable energy and advanced technologies, both of which heavily rely on rare earths production.

China, the world’s largest producer of rare earth elements, accounts for nearly 90 percent of global processing capacity for these critical metal compounds. Still, a significant portion of the raw materials refined in China is imported from other countries. Specifically, the three primary sources are Myanmar, Laos, and Malaysia, with Myanmar being the top supplier. In 2024, Myanmar delivered 44,000 tonnes of rare earth elements to China, which comprised approximately 57 percent of Beijing’s total rare earth imports. Accordingly, a supply chain has emerged in which rare earth extraction occurs in Myanmar and processing takes place in China.

China’s supply chains – and thus the world’s supply chains, and the global green energy transition – heavily rely on the mining industry in Myanmar, especially in the northern part of the country. The stability of northern Myanmar, including Kachin State, has a direct impact on the mineral trade with China, prompting Beijing to position itself as a stakeholder amid the ongoing conflict between the junta regime and local rebels.