China’s Rare Earth Dominance Reliant on Myanmar Supply Chain
Beijing is increasingly dependent on rare earth supplies from Myanmar, a war-torn nation, to maintain its dominance in the global market. While China remains the world’s leading producer of rare earths,it now imports important raw materials from abroad,with Myanmar accounting for approximately 57% of China’s total rare earth imports last year[[1]].
This reliance has grown dramatically in recent years. Rare earth imports from Myanmar to China jumped from 17,400 tonnes in 2020 to over 40,000 tonnes in 2023[[2]]. This surge is especially significant because Myanmar’s deposits are rich in heavy rare earth elements – dysprosium and terbium – which are crucial for high-tech manufacturing, including defense, aerospace, and renewable energy sectors[[1]].
The shift to Myanmar is linked to stricter environmental regulations in China. As Beijing implemented new environmental controls on its domestic rare earth industry in the early to mid-2010s, many projects were forced to close[[1]]. Myanmar, particularly its northern regions, offered similar geology and less stringent regulations, leading to a rapid expansion of new mining operations, largely funded by Chinese businesses[[1]].
control of these mines is increasingly falling into the hands of China-backed militias. Sources indicate that the UWSA, a beijing-backed militia, is securing control of new rare earth mines in Shan state, with operations run by Chinese-speaking operators
