Myanmar’s War Fuels China’s Rare Earth Grip

[geovalin]

Global Witness

 

Despite civil war and chaos, Myanmar has quietly become a linchpin in China’s dominance over the global supply of heavy rare earths — the minerals critical to everything from fighter jets to smartphones.

 

While most eyes are on Myanmar’s political crisis and humanitarian toll, another story unfolds deep in the country’s north — one that’s quietly shaping global supply chains. According to the U.S. Geological Survey, Myanmar is now among the world’s top sources of rare earth elements, particularly the high-value “heavy” rare earths like dysprosium and terbium. And nearly all of it flows into China.

 

China, already the world’s top rare earth producer, has leaned heavily on Myanmar to feed its downstream refining and high-tech industries. In fact, 57% of China’s rare earth imports last year came from Myanmar, says Gracelin Baskaran of the Center for Strategic and International Studies (CSIS). These imports are rich in the rarer heavy elements, giving Beijing a de facto monopoly over that segment of the market.

 

Myanmar’s unique deposits — ionic adsorption clay, similar to those once mined in Southern China — offer exactly the kind of material Beijing needs. But extraction comes at a high price: toxic waste, water pollution, and devastated local communities. A 2024 Global Witness report accused China of effectively outsourcing its environmental damage to a country embroiled in civil war.

 

The risks aren’t just ethical. They’re economic. Since Myanmar’s 2021 coup, control over mining regions — especially in Kachin State — has shifted. Armed groups like the Kachin Independence Army have seized key sites, reportedly disrupting supply and sending prices soaring.

 

“China’s reliance on Myanmar is a growing vulnerability,” says Baskaran. “If Myanmar halts exports, China would struggle to meet demand — at least in the short term.”

 

Beijing has begun seeking alternatives in Laos and Malaysia, but tougher environmental rules there make large-scale projects more complex. Meanwhile, rare earth shortages remain a looming threat for industries worldwide.

 

What’s happening in Myanmar isn’t just a regional crisis — it’s a flashpoint in a global race for strategic minerals.

 

-2025-06-25