Mining under the protection of the world power: A militia secures China's access to rare earths in Myanmar
The United Wa State Army protects China's interests in rare earth mining in Myanmar. The militia could be the key to China's leading position in the global market.
China appears to be further expanding its leading position in the global rare earth market. According to Reuters , Chinese companies are mining new deposits in Myanmar's Shan Province under the protection of the United Wa State Army (UWSA). The militia not only protects rare earths but is also reportedly profitably involved in the drug trade. It maintains close ties to China and plays a crucial role in securing Beijing's strategic interests by creating a stable environment for resource extraction in an uncertain region.
Rare earths are of enormous importance to China, as they are needed for the production of wind turbines, electric cars, and other critical technologies. China receives almost half of its raw materials from Myanmar, making it heavily dependent on imports. Recently, conflicts in northern Myanmar have threatened security, but new mining activities in Shan State could provide a solution.
Satellite images from Planet Labs and Maxar Technologies, according to Reuters, show that at least 100 workers are working day and night in the Shan hills to extract the valuable minerals and transport them to China. Trucks transport the material to border crossings about 200 kilometers away.
According to the New York Times, following a 2010 embargo against Japan, China has taken rigorous measures to secure control over domestic production and exports of rare earths. Beijing is implementing far-reaching reforms to eradicate corruption and prevent smuggling. This consolidation of the industry under state control has enabled China to further reduce its dependence on foreign markets.
According to US analysts, the UWSA is crucial for China to secure its influence along the border with Myanmar. Ye Myo Hein of the Southeast Asia Peace Institute, according to Reuters, said the UWSA maintains a force of up to 35,000 fighters and purchases state-of-the-art weapons from China. These also monitor the mine-ridden area, preventing free movement without special permits.
China's strategic positioning could create far-reaching dependencies through its control of the international supply chain. According to the New York Times, Xi Jinping emphasized in a 2020 speech: "We must build on our strengths and consolidate our international leadership in industries where we have an advantage."
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