China faces significant challenges in its policy towards Myanmar, as researchers from Green Growth Asia Consultant and the Australian National University highlight in The Diplomat. Beijing imports over half of its rare earth elements from the conflict-ridden neighboring country and maintains good relations with both the Myanmar junta and various rebel groups.
Myanmar, recently in the headlines due to a devastating 7.7 magnitude earthquake, has been torn by civil war for decades. It remains one of China's key suppliers of rare earth elements.
Although China accounts for nearly 90% of global rare earth metal processing capacity, it imports a substantial portion from other countries, primarily Myanmar, Laos, and Malaysia. In 2024, Myanmar supplied 44,000 tons of rare earth elements to China, representing about 57% of total imports.
Myanmar holds strategic importance for Beijing, as geopolitical influence often hinges on access to rare metals and minerals. However, China must navigate carefully as Myanmar grows increasingly unstable. The junta has lost significant ground to numerous rebel factions, turning the country into a patchwork of ethnicities and armed groups.