Reuters: China Issues Ultimatum to Kachin Army in Northern Myanmar to Avoid Risk of Global Rare Earth Supply Chain Disruption
Reuters, July 8 report, China has recently issued an ultimatum to the Kachin Independence Army (KIA), demanding that it cease attacks on the strategic stronghold of Bhamo, otherwise it will stop importing heavy rare earths from Kachin State. This threat directly impacts the global rare earth supply chain, as Myanmar supplies nearly 50% of the world's heavy rare earths, and China monopolizes over 90% of its smelting capacity. In the first five months of 2025, China imported only 12,900 tons of rare earth oxides and metals from Myanmar, a 50% drop compared to the previous year, despite a 20% rebound in exports in April and May. After the KIA took control of the main rare earth production areas in October last year, it raised prices of terbium by increasing taxes and limiting production, causing significant fluctuations in international market prices. The UK-based consulting firm Benchmark Mineral Intelligence warned that if the supply from Myanmar continues to be disrupted, a shortage may occur in the global heavy rare earth market by the end of the year, with prices outside China possibly surging. The Chinese Foreign Ministry responded that "it does not have specific details about negotiations between the warring factions within Myanmar," but emphasized that "ceasing hostilities is in the common interest of China and Myanmar." Reuters analysis pointed out that China's move aims to protect its economic interests in Myanmar and strengthen its ability to intervene in regional conflicts through the leverage of rare earths. The KIA said, "No country can bear the long-term disruption of rare earth supply," and the game among all parties will continue to escalate.
Original article: https://www.toutiao.com/article/1837073764457609/
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