Myanmar rebels take control of key land trade route to China

With Myanmar in fresh turmoil due to increased clashes between an alliance of ethnic rebel groups and military junta, Beijing’s concerns regarding safety of its economic interests have mounted as rebels have recently taken control of a key trade route to China while overrunning several military bases lying along the Myanmar-China border.

The rebels on October 27 blew up a bridge over Namtu river in Hseni town in Shan state and seized more than 60 junta bases around the Chinese border, according to sources.

The bridge, which is on the Lashio-Muse Road in Myanmar’s Shan state, is the key for trade between China and the Southeast Asian country. As per estimates, more than 80% of the annual trade between Myanmar and China passes through the Lashio-Muse Road, which connects the Southeast Asian country with Ruili city in China’s Yunnan province.

Although no statement has been issued by Myanmar’s military so far, this was a major operation against the junta by the combined ethnic rebel groups’ alliance, comprising the Myanmar National Democratic Alliance Army (MNDAA), the Arakan Army (AA) and the Ta’ang National Liberation Army, sources said, adding, the rebels have seized several military bases and police outposts. Rebels have also taken control of Chin Shwe Haw, a trade town near the Chinese border.

Regarded as the main gateway of the border trade between Myanmar and China, the four-lane 48-feet wide Lashio-Muse Road also facilitates China in bankrolling millions of dollars worth of equipment and resources meant for the ongoing multi-billion China Myanmar Economic Corridor.

China said it is closely watching the development in Myanmar. “We call on relevant parties to ceasefire as soon as possible, settle disputes in a peaceful manner through dialogue and consultation, avoid escalation of the situation, and take effective measures to ensure the security and stability of China-Myanmar border areas,” China’s foreign ministry spokesperson Mao Ning said.China fears that if conflict escalates between the junta and rebels then it will have a major impact on the Chinese areas adjoining Myanmar border, according to observers of Myanmar-China ties. A large section of Myanmar’s armed rebels opposing military rule in the country share ethnic and cultural relations with China’s ethnic groups. For example, Jinphos and Myanmar’s Kachin are of the same stock. Similarly, Wa ethnic group is found on both sides of the border, while Myanmar’s Kokang and China’s Han speak Mandarin language.As per a survey in August 2022 by the Institute for Strategy and Policy (ISP), a Myanmar-based think-tank, 55% people expressed a negative view of China because of its tacit support to the junta even after it carried out a military coup against a democratically elected government.

Published in English, the survey result showed 58% people in Myanmar are unhappy with their country’s status as China’s largest trading partner. This was reflected clearly in people’s perception towards the ambitious China-Myanmar Economic Corridor (CMEC). As per the ISP survey, 83% of people said most of the benefits of the CMEC projects, designed to connect China’s Yunnan province with the Indian Ocean, would go to China, while only 12% saw that the project could bring mutual benefits to both countries.

Myanmar offers rare earth materials to China; they are used for making critical components for missiles, firearms, radars, and stealth aircraft. According to Reuters, “about half of China’s feedstock of heavy rare earths comes from Myanmar”. Between May 2017 and October 2021, Myanmar exported more than 140,000 tonnes of rare earth deposits worth $1 billion to China, the State Taxation Administration of China said in a statement.