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Finance

Myanmar’s civil war intensifies as China plunders rare earth minerals

Asia Business News
Last updated: April 8, 2025 12:52 am
By Asia Business News
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China’s mining of rare earth minerals in Myanmar has reached unprecedented levels, The Irrawaddy reports, saying the looting of the minerals has caused an “environmental disaster” in Kachin state.

The news outlet said that Chinese customs data showed “a staggering 70% increase in import volume” in 2023, with Shipments reached 34,241 tons.

The report suggested that China was exploiting the country as it descends into its worst civil unrest since independence, saying “Beijing’s aggressive stockpiling strategy far exceeds its domestic needs” and that “China is hoarding resources to use its weapons ization in response to potential future sanctions.”

The report said that the northern state of Kachin was once known for its pristine forests and rich biodiversity, but “now resembles a moonscape full of mines and processing facilities.”

It is said that Chinese companies operate through “a complex network of local agents and shadow partners, expanding their business scale by more than 40%. Currently, Myanmar has become “China’s main source of heavy rare earths, supplying approximately 40% of the key elements Such as dysprosium, yttrium and terbium.

The environmental impact is “catastrophic” – an investigation by UK-based NGO Global Witness found “extensive damage to ecosystems, with toxic chemicals from processing contaminating water sources and farmland.”

Local communities complain of severe health effects—skin diseases, respiratory problems, and damage to internal organs. But their concerns were ignored by the ruling military government, which “depends on China’s support for survival”.

Many Western countries and companies are boycotting Myanmar because its military has been launching airstrikes against citizens in conflict zones, but Chinese companies have been operating without scrutiny and “flouting international trade regulations and environmental standards with impunity.”

They established virtual “private rare earth reserves,” but this came at a terrible human cost, and their abuses “evaded international scrutiny because of Myanmar’s isolation.”

read Full report: The Irrawaddy.

See also:

US hits Chinese companies for cyberattacks, ‘Myanmar’ companies for explosions

ASEAN seeks end to Myanmar war and quick agreement on South China Sea

Thai task force helps stop weapons funding for Myanmar military

Aung San Suu Kyi’s adviser calls for sanctions on Myanmar’s central bank

UN rapporteur calls on Thai banks to stop aiding Myanmar military junta

Report says Southeast Asian fraud syndicates stole US$64 billion in 2023

US, UK and Canada step up action against Myanmar’s military junta

Central Bank of Myanmar cancels 120 foreign exchange licenses – RFA

Bangladesh’s main bank freezes Myanmar regime’s accounts

UOB to cut ties with Myanmar banks on September 1 – Nikkei

EU and US sanctions aimed at curbing Myanmar’s war funding

Criminal groups control parts of Myanmar, Laos economic zones: United Nations

ICG warns Myanmar heading towards state collapse

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He served as a senior editor at The Nation for more than 17 years.

TAGGED:ChinaCivilEarthintensifiesmineralsMyanmarsplundersrareWar
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