Most concerning, China is increasing its control over Myanmar’s rare-earth mineral assets, including in Kachin state. The country hopes to use these precious holds as bargaining chips in its international and domestic tariff negotiation with the U.S. Another group of minerals, including lithium and neodymium, have enormous strategic importance. In recent months, they’ve evolved into critical bargaining chips in the growing economic standoff between the two superpowers.
The Kachin region, in northern Myanmar, has long been one of the country’s main sources of rare-earth elements. These minerals are essential for many advanced applications, such as electronics, renewable energy technologies, and military applications. Control over these resources increases China’s power in global trade negotiations. This benefit is critical, as China continues to weather the growing list of US tariffs.
One particular mine in Kachin has recently drawn the attention of Chinese authorities. They are right to herald its potential to change the global supply chain of rare-earth elements. As production rates slow, demand for these minerals continues to increase at a staggering speed. China has been very active to ensure access to Myanmar’s resources, furthering their strategy of dominating the rare-earth market.
China’s maneuvers in Myanmar couldn’t come at a more opportune time. The current US-China trade war has highlighted rare-earths’ importance as a potent bargaining chip. By fostering closer ties with Myanmar and exerting pressure on local rebel groups, China aims to ensure a steady supply of these essential resources while simultaneously undermining US interests.
China’s aggression in the region, analysts argue, could be a sign of things to come. As it increases its involvement in Myanmar’s mining sector, Beijing could potentially gain leverage over US companies reliant on rare-earth materials. This trend is a prime example of the major geopolitical impacts of resource control. Nations are always willing to make war to protect their economic interests.
The story in torture-prone Kachin is just as bad. At the same time, China’s strategic interest in Myanmar’s rare-earth minerals raises immediate ecological issues and impacts surrounding communities. For years, activists have cautioned about the environmental destruction wreaked by the mining industry in the area. They worry that the problem might deepen with a growing Chinese stake and scrutiny.