China lands in troubles in Myanmar, tribals up in arms against..., will this impact India?

The dragon has landed in the soup. The tribesmen in the Shan state of Myanmar are up in arms against the Myanmar-China joint venture project for extracting rare earth minerals. Hundreds of tribals in the hilly terrain of Pradawng marched to the project site to mine the rare earth minerals. The little-known subtribe of the Kayan ethnic group, which numbers around 3,000 with a 381-year lineage in Shan state, came out against the concept of selling the minerals. After blocking roads and turning back vehicles, the tribals threatened to seize the mining equipment of the Chinese company despite threats. 

Anger against China-Myanmar JV project

According to the World Health Organisation (WHO), extracting rare earth minerals can pollute local soil and water supplies and the children may become vulnerable to exposure to diseases. The residents are particularly against the Four Star Company, which has been active in mining activities in the area for two decades. It is also linked to the local ruling Kayan New Land Party, whose armed wing maintains a ceasefire with Myanmar’s military.

The involvement of its Chinese partner was only revealed when its representatives attended a joint event with Four Star Company intended to address community backlash.

China eyes Rare-earth minerals

According to 2023 World Bank data, Myanmar exports about 98% of lead ore and concentrate to China. Myanmar exported 49,000 tonnes of these minerals with an estimated value of $20 million in 2023.   These rare earth minerals are important for Beijing as they are used in rechargeable lead-acid batteries, which are widely used in vehicles, including EVs. These batteries provide auxiliary power in the EVs and are also used for storing power generated by renewable technologies such as wind and solar.

How may India be impacted?

The analysts believe India is also interested in mining these minerals for its use in the EV as the country has ambitious plans of emerging as an EV manufacturing base. New Delhi has good relations with Myanmar, it has gone to the extent of supporting the authoritarian military regime. However, it can not compete with China in this field due to many reasons. After the US launched its tariff war against many countries and imposed the impractical 145% tariff on Chinese goods, including EVs, India saw a glimmer of hope. However, after the Chinese role in the recent India-Pakistan clashes became apparent, it was almost impossible for the two countries to develop any kind of economic cooperation. Rather the competition may become more intense and nasty.