How war-torn Myanmar plays a critical role in China’s rare earth dominance
China, while dominating the global rare earths industry, has become increasingly reliant on Myanmar for heavy rare earth elements, particularly dysprosium and terbium—crucial for high-tech and defense sectors—due to the scarcity of these metals and environmental restrictions on domestic mining. Since 2018, Myanmar has supplied over half of China’s rare earth imports, largely from ionic adsorption clay (IAC) deposits in its northern Kachin State. However, Myanmar's political instability, especially since the 2021 coup, has made this supply chain precarious, with recent rebel seizures of key mining areas triggering price spikes and import declines. As a result, Beijing is seeking alternative sources in countries like Laos and Malaysia, though higher environmental standards pose further challenges.