Myanmar's Kachin region gains influence over China's heavy rare earth supply

Myanmar supplies China with heavy rare earths used in magnets for electric vehicles, wind turbines and defense systems.

Much of the mining takes place in Kachin State, which borders China's Yunnan province.

After Myanmar's 2021 military coup, mining expanded, and China became heavily reliant on Myanmar for some of these minerals.

In late 2024, the Kachin Independence Army took control of key mining areas near the Chinese border.

China's rare earth imports from Myanmar fell 89% year over year by February 2025, while terbium prices rose about 22%.

Shipments later resumed, but the Kachin Independence Organization, the KIA's political wing, began taxing and regulating mining in areas under its control.

By 2026, its rules for Chinese companies covered waste, water and workers' rights, giving the group greater influence over a supply chain important to China and global industries.