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China taking advantage of global isolation of Myanmar to plunder its rare earth wealth

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(TibetanReview.net, Dec29’24) –An environmental catastrophe is unfolding in plain sight in Myanmar’s Kachin state, with massive Chinese excavators tearing into the earth, while chemical processors extract precious rare earth elements, leaving behind a wasteland of toxic pools and barren soil and a local population utterly devastated by it all, said an opinion piece in the irrawaddy.com Dec 28.

This systematic destruction is not just another case of resource exploitation—it is China’s calculated strategy to dominate the global supply chain of critical minerals, using Myanmar’s political isolation as a shield for its rapacious activities, the piece, written by Assistant Professor in International Relations, School of International Cooperation, Security and Strategic Languages (SICSSL), RRU, India, said.

The scale of China’s rare earth extraction in Myanmar is stated to have reached unprecedented levels, with recent data from Chinese customs revealing a staggering 70% surge in imports during the first half of 2023, with shipments reaching 34,241 metric tons.

This signals that Beijing’s aggressive stockpiling strategy extends far beyond its domestic requirements. The message is clear: China is hoarding resources to weaponize them against potential future sanctions, the piece noted.

As a result of China’s plunder, the Kachin region, once known for its pristine forests and rich biodiversity, is now said to resemble a lunar landscape pockmarked with mining pits and processing facilities.

Operating through a complex web of local proxies and shadowy partnerships, Chinese companies are stated to have expanded their operations by over 40% across the region, making Myanmar China’s primary source of heavy rare earths, supplying approximately 40% of crucial elements like dysprosium, yttrium, and terbium.

All this has resulted in a catastrophic environmental toll.

An investigation by Global Witness – an international NGO that works to break the links between natural resource exploitation, conflict, poverty, corruption, and human rights abuses worldwide – is reported to have revealed widespread destruction of ecosystems, with toxic chemicals from processing operations contaminating water sources and agricultural land.

Rare earth mine in Kachin region, Myanmar. (Photo courtesy: Global Witness)

Local communities are stated to have reported severe health impacts, including skin diseases, respiratory problems, and internal organ damage. Yet these concerns fall on deaf ears as China’s mining operations are protected by Myanmar’s military junta, which depends on Chinese support for survival, the piece noted.

It said that as the world races to transition to renewable energy and advanced technologies, all of which require rare earth elements, China has positioned itself as the gatekeeper of these crucial resources. By controlling both mining and processing—with nearly 90% of global rare earth processing capacity—China has created an almost impenetrable monopoly. This dominance extends beyond mere market control: it is a strategic weapon aimed at the heart of Western technological advancement.

The international community’s boycott of Myanmar means that Chinese firms operate without competition or scrutiny, flouting international trade regulations and environmental standards with impunity. This vacuum is stated to have allowed Beijing to establish what amounts to a private rare earth reserve that could be weaponized at will against Western economies.

While the implications for global supply chains are profound, the human cost is equally devastating, with indigenous communities in Kachin being displaced from their ancestral lands, and their traditional farming areas transformed into toxic mining zones.

The Business and Human Rights Resource Center – which works to advance human rights in business and eradicate abuse – has documented numerous violations, including forced relocations, labor abuses, and the destruction of cultural heritage sites. Yet these abuses continue unchecked, hidden from international scrutiny by Myanmar’s isolation, the opinion piece noted.

It warned that until the global community and responsible powers take decisive action, China’s plunder of Myanmar’s rare earth wealth will continue, building a stockpile that threatens not just global supply chains but the future of technological development itself.

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