China is reportedly pressuring the Kachin Independence Army (KIA) to halt its offensive on Banmaw city by threatening to suspend rare earth mineral purchases. A significant portion of global rare earth production is tied to China’s interests in Kachin State, where conflict between the military council and KIA forces has persisted for years. The KIA launched its offensive to capture Banmaw city in December 2024, and nearly half of the world’s rare earth production occurs near Banmaw, where fighting is currently taking place.
China, the primary buyer of rare earth minerals from Kachin State, has been increasing pressure on the KIA to stop its military campaign in Banmaw. This ultimatum was delivered during meetings with Chinese Foreign Ministry officials in May, demonstrating China’s use of resource trade as a tool for regional geopolitical influence. The ongoing conflicts have already restricted mining operations, leading to a significant decline in Myanmar’s rare earth exports this year.
A Chinese Foreign Ministry spokesperson stated that the ceasefire and peace negotiations between the Myanmar military and the Kachin Independence Army would serve the common interests of both China and Myanmar. While a senior KIA general declined to comment on Chinese pressure, an unnamed KIA official revealed that China had offered to conduct cross-border trade with KIA-controlled territories if they ceased the Banmaw offensive. However, the official also disclosed that China threatened to block exports from Kachin State, including rare earth minerals, if the KIA refused to comply with their demands.
