In Myanmar’s Kachin state, an environmental catastrophe unfolds in plain sight. Massive excavators tear into the earth, while chemical processors extract precious rare earth elements, leaving behind a wasteland of toxic pools and barren soil. 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 scale of China’s rare earth extraction in Myanmar has reached unprecedented levels. Recent data from Chinese customs reveals a staggering 70-percent 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.
Myanmar’s transformation into China’s rare earth warehouse has been swift and devastating. The Kachin region, once known for its pristine forests and rich biodiversity, now resembles a lunar landscape pockmarked with mining pits and processing facilities. Operating through a complex web of local proxies and shadowy partnerships, Chinese companies have expanded their operations by over 40 percent across the region. This has made Myanmar China’s primary source of heavy rare earths, supplying approximately 40 percent of crucial elements like dysprosium, yttrium, and terbium.
The environmental toll is catastrophic. Global Witness investigations reveal widespread destruction of ecosystems, with toxic chemicals from processing operations contaminating water sources and agricultural land. Local communities report 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.
Beijing’s strategy is insidious in its timing. 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 percent 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, while intended to pressure the military regime, has backfired spectacularly in this context. With Western companies forced to withdraw, Chinese firms operate without competition or scrutiny, flouting international trade regulations and environmental standards with impunity. This vacuum has allowed Beijing to establish what amounts to a private rare earth reserve that could be weaponized at will against Western economies.
The implications for global supply chains are profound. As countries worldwide push to develop domestic semiconductor industries and transition to green technologies, China’s stockpiling creates a powerful economic chokepoint. The strategy mirrors Beijing’s previous use of rare earth exports as a geopolitical weapon, exemplified by its 2010 embargo against Japan, but suggests preparation for a much larger confrontation.
The human cost is equally devastating. Indigenous communities in Kachin have been displaced from their ancestral lands, their traditional farming areas transformed into toxic mining zones. The Business and Human Rights Resource Center documents 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.
China’s vertical integration of the rare earth supply chain creates additional barriers for countries seeking to develop independent capabilities. The combination of technological expertise, processing infrastructure, and now raw-material control makes breaking this monopoly increasingly difficult. While the U.S. and EU have launched initiatives to develop alternative supply chains, they have faced significant hurdles in competing with China’s established dominance.
The situation demands urgent international intervention. The current approach of sanctioning Myanmar while ignoring China’s resource grab has proven counterproductive. New mechanisms must be developed to prevent the strategic stockpiling of critical minerals and ensure transparent, environmentally responsible mining practices. This could include targeted sanctions on companies involved in environmental destruction and human rights abuses, regardless of their national origin.
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. The world’s silence on this issue only emboldens Beijing’s strategy, making future supply chain disruptions not just possible but inevitable. As Myanmar’s resources are systematically stripped away, the window for preventing this looming crisis narrows, threatening to leave the global community at the mercy of China’s rare earth monopoly.
Ankit K is an Assistant Professor in International Relations, School of International Cooperation, Security and Strategic Languages (SICSSL), RRU, India.
