In a strategic move, China secures valuable rare earth deposits in Myanmar, operated under the protection of a local militia amidst ongoing civil unrest.
China has enhanced its foothold in the rare earth mineral sector by acquiring valuable mining rights in Myanmar, particularly in the mineral-rich regions of Shan State.
This strategic acquisition comes as Beijing aims to maintain its monopoly on the rare earth elements market, crucial for manufacturing magnets and various high-tech applications.
Over the first four months of the year, nearly half of China's imports of essential materials like dysprosium and terbium came from Myanmar.
The extraction efforts in Myanmar are safeguarded by the United Wa State Army (UWSA), a powerful local militia comprising an estimated 30,000 to 35,000 members, which is engaged in a struggle for independence against Myanmar's ruling military junta.
Reports indicate that Chinese miners are actively opening new sites for extraction under the protection provided by the UWSA in the hilly terrains of eastern Myanmar.
Access to rare earth elements has gained increasing significance for China, especially following the intensification of export restrictions on these metals and the magnets produced from them.
This tightening comes in the wake of the renewed U.S.-China trade war initiated by former President
Donald Trump, leading to substantial disruptions in the supply chains of the automotive, aerospace, and semiconductor industries.
Notably, automotive suppliers and manufacturing lines in Europe faced operational halts due to these supply chain challenges.
A recent development indicated a potential thaw in relations, as the United States and China reached an agreement regarding rare earth minerals.
Under this accord, China is set to supply rare earth elements and other essential mineral resources to American companies.
In return, the U.S. government has indicated a willingness to retract its plans to revoke visas for Chinese students, signifying a shift towards cooperation in this critical sector.