| Myanmar has rapidly emerged as a pivotal, yet highly unstable, source of heavy rare earth elements (HREEs), critical for global high-tech industries. Its unique geological formations offer exceptionally high concentrations of dysprosium and terbium, making Myanmar a crucial player, contributing approximately 50% of global HREE production. This paper details China`s dominant and complex involvement in Myanmar`s rare earth sector, a relationship amplified significantly following the 2021 military coup. The post-coup period has seen a dramatic surge in unregulated mining, transforming rare earths into a significant revenue stream for various armed groups, including the Kachin Independence Army (KIA) and the military junta. The concentration of these vital resources near the Chinese border, coupled with China`s near-monopoly on HREE processing, creates a precarious single point of failure in global supply chains. This geopolitical nexus and conflict economy is characterized by intense conflict over control of mining regions and export routes, with China employing pragmatic diplomatic and economic pressure tactics to secure its supply. The rapid, unregulated extraction has, however, unleashed a catastrophic environmental and social disaster, causing widespread water and land contamination, ecosystem destruction and severe health and livelihood crises for local communities, with transboundary pollution affecting neighboring countries. The absence of formal regulatory oversight has allowed non-state actors to become de facto regulators, further complicating sustainable resource management. While global powers recognize the imperative to diversify rare earth supply chains, the on-the-ground realities in Myanmar present formidable challenges, reinforcing China`s interim leverage. This paper concludes with strategic recommendations for promoting responsible sourcing, supporting legitimate governance, addressing humanitarian and environmental crises, and fostering long-term supply chain resilience. |
