For travelers with an interest in local crafts, a stop at Bogyoke Aung San Market in Yangon is a must. Once known as Scott Market, it is a veritable goldmine of antique stores, traditional jewelry shops, and boutiques filled with Burmese handicrafts. Among the many precious goods, the jade items stand out. But talking to the shopkeepers reveals a more troubling story.
They are worried about the future and the exploitation of Myanmar’s natural resources, recounting how avaricious Chinese businesspeople, backed by their government, are systematically depleting the country’s jade reserves and leaving local communities in distress.
Myanmar’s abundant natural resources have been a target for exploitation for years. The most recent and aggressive player is China, whose resource extraction has resulted in severe environmental damage and the displacement of local populations. China’s actions in Myanmar are emblematic of a broader strategy that prioritizes resource extraction under the pretense of development, leaving a trail of destruction in its wake.
Myanmar boasts reserves of jade, timber, oil, gas, and hydropower potential. For years, these assets have been exploited by foreign entities, but the Chinese involvement is unparalleled. As Myanmar’s largest trading partner and a key investor, China has concentrated its efforts on resource-rich industries, pouring over US$25 billion into the country from 1988 to 2019.
A 2023 report from the Environmental Investigation Agency (EIA) highlights the devastating impact of illegal logging tied to Chinese firms, which has ravaged extensive areas of Myanmar’s forests, especially in the northern regions of Kachin and Shan states. The jade trade, primarily based in Kachin State, is another stark example. While the sector generates billions annually, most of the profits are funneled to Chinese buyers and their local associates, leaving the local populace with little benefit. A 2015 Global Witness report estimated the jade industry’s worth at over $31 billion a year, with Chinese demand fueling rampant illegal mining and significant environmental degradation.
China’s aggressive pursuit of hydropower projects in Myanmar further underscores its indifference to local communities and ecosystems. The Myitsone Dam, a $3.6 billion initiative supported by Chinese state-owned enterprises, has become a byword for controversy. Located at the junction of the Mali and N’Mai rivers in northern Myanmar, the dam poses a threat to the Irrawaddy, the birthplace of Burmese civilization and the country’s lifeblood.
The environmental ramifications of such developments are severe. Hydropower dams disrupt river ecosystems, displace local populations, and endanger fisheries that are crucial for millions. According to environmental organization International Rivers, the Myitsone Dam would displace over 18,000 members of the Kachin ethnic group, destroying their ancestral lands and cultural identity. Construction was halted in 2011 following public protests.
Illegal logging is exacerbated by Chinese involvement. Once celebrated for their rich biodiversity, Myanmar’s forests are now in rapid decline. A report from the World Resources Institute highlights a staggering loss of nearly 20 percent of Myanmar’s forest cover from 2002 to 2020, with a substantial portion of the timber being smuggled into China. The driving force behind this illicit trade is the insatiable demand for teak and other hardwoods in the Chinese market.
To combat this crisis, Global Forest Watch (GFW) has implemented deforestation alerts to provide timely warnings about potential forest loss. In 2024, the alert system expanded its reach to mainland Southeast Asia, monitoring disturbances in primary tropical rainforests across five additional countries including Myanmar. But the ramifications of illegal logging extend far beyond mere deforestation. According to the EIA’s 2023 report, entire ecosystems are being obliterated, wildlife habitats are disappearing, and the resulting soil erosion is intensifying flooding and landslides.
Mining, particularly of jade and rare earth minerals, has transformed significant areas of Myanmar into ecological disasters. Projects funded by Chinese interests in Kachin and Shan states employ harmful methods that pollute waterways and make land unsuitable for farming. The extraction of rare earth minerals, essential for contemporary technology, poses severe risks as it involves toxic substances that taint water supplies.
A recent study by the Thai government has pinpointed mining in eastern Shan State as a key factor behind the unprecedented mudslides that devastated Mae Sai during recent floods. Research by Thailand’s Department of Natural Resources in October 2024 revealed that extensive gold mining along the Sai River in eastern Mong Hsat was responsible for significant damage inflicted by mud-laden floodwaters on the residents of the northern Thai border town. The analysis of flood sediment from the riverbank indicated alarming levels of heavy metals linked to mining activities—notably arsenic, nickel, and zinc. One sample showed zinc concentrations 18 times above the recommended safety limits. In the past two years, gold mining for China has surged in eastern Mong Hsat, particularly near Mong Karn and Na Yao villages, which are under the control of the United Wa State Army (UWSA), as well as near Mae Jok village, where a junta-aligned militia operates.
The health consequences for local communities are dire. People living close to mining operations report a rise in respiratory and skin ailments, while polluted water sources contribute to gastrointestinal diseases. The Myanmar Centre for Responsible Business (MCRB) has consistently advocated for more stringent regulations in the mining sector, yet enforcement remains inadequate, largely due to the powerful presence of Chinese corporations.
China’s resource extraction in Myanmar is intricately linked to the nation’s tumultuous political environment. In many resource-rich regions, control lies not with the central government but with various armed ethnic factions. Allegations have surfaced that Beijing is exploiting its connections with these groups to gain access to valuable resources. One example can be found in Kachin State, where Chinese enterprises frequently operate with the backing of armed groups, compensating them for security and resource access.
Beyond resource extraction, China’s engagement in Myanmar encompasses significant infrastructure projects under the Belt and Road Initiative (BRI). Although marketed as vehicles for development, they often come with hidden costs. The loans associated with large-scale endeavors like the Kyaukphyu deep-sea port and special economic zone have sparked concerns about Myanmar’s potential descent into debt dependency. Detractors contend that these initiatives primarily serve China’s strategic ambitions rather than the genuine development needs of Myanmar. The Kyaukphyu port, for instance, grants China unimpeded access to the Indian Ocean, circumventing the critical Malacca Strait. As Myanmar’s debt to Chinese financiers escalates, its capacity to pursue independent policies diminishes, effectively surrendering aspects of its sovereignty to Beijing.
The situation in Myanmar is a cautionary tale about the perils of unregulated foreign investment in vulnerable nations. While China enjoys the fruits of this exploitation, Myanmar faces the repercussions—environmental degradation, social instability, and diminishing autonomy. To rectify it, a unified approach involving the Myanmar government, civil society, and supportive neighboring nations is essential. Only through enhanced transparency, accountability, and sustainable development practices can Myanmar safeguard its natural resources and secure a brighter future for its citizens.
