Junta reopens key China trade highway after retaking Hsipaw

After retaking Hsipaw on October 18, Myanmar’s junta reopened a vital highway to China: reclaiming a trade route once seized during Operation 1027 and long seen as a symbol of resistance control in northern Shan State.Following Operation 1027, the junta restricted the flow of food, fuel, medicine, and electronics to northern Shan State as resistance forces seized nearly all towns along the Chinese border.Regrouping with new recruits, the military launched renewed offensives that forced the Ta'ang National Liberation Army (TNLA) to surrender three towns. The junta’s push also coincided with two meetings between its commission leader and China’s president this year, underscoring Beijing’s influence on the campaign’s direction.On August 14 in Anning, Yunnan Province, junta foreign minister Than Swe met with China’s Wang Yi, who pledged support for Myanmar’s sovereignty while pressing for protection of Chinese nationals, investment security, and joint action against cross-border crime. Local residents along the China border and traders report that trade is struggling, affected by the resistance forces’ varying tax system in northern Shan and the junta’s seizures of unlicensed goods. Nearly two years after its formation, the Brotherhood Alliance—a coalition of the Ta’ang National Liberation Army (TNLA), Myanmar National Democratic Alliance Army (MNDAA), and Arakan Army (AA)—has become one of the most powerful anti-junta alliances in northern Myanmar, leading major offensives such as Operation 1027 along the China–Myanmar border.Back in December, 2023 the alliance seized the 105-Mile Trade Zone, and trade resumed on July 1, 2025, under a new tax system that had operated for three months. The 105-Mile Trade Zone checkpoint, a key hub for commerce in northern Shan State where 10 trucks pass through daily. (Photo: Myanmar Now) “The taxes and seizures are part of the problem,” a resident from the 105-Mile Trade Zone said. “The route was bustling when it first reopened, and workers returned once the section was accessible. Today, the area is nearly deserted. With trade slowing down, most workers from mainland Myanmar have returned home. Located about six miles from the town of Muse, on the China border, the 105-Mile Trade Zone was once a key trading hub, with monthly trade valued at nearly 500 million USD. Before the coup, over 300 trucks a day carried crops like rice, beans, and corn from Muse into China through three checkpoints — Nantaw, Sin Phyu, and the main Mant Wein Gate. Today, it’s as few as 10.Though the junta held Muse during Operation 1027, the 105-Mile Trade Zone stayed under Brotherhood Alliance control, and today only the Sin Phyu Gate is open to imports while Mant Wein remains closed, traders say.“Most trucks used to pass through Mant Wein Gate, but it is now closed on the Chinese side. Currently, only small shipments carried on motorcycles go through Sin Phyu Gate,” a Muse resident said.Trade along northern Myanmar’s key routes has slowed as multiple resistance groups impose taxes on goods moving toward China, adding heavy costs to transporters. Many traders have shifted to the Chin Shwe Haw crossing, now under the Brotherhood Alliance’s control, where trade continues but figures are no longer publicly released by either side. A Ta'ang National Liberation Army (TNLA) checkpoint on the Kutkai–Muse Road, photographed in October, 2025. (Photo: Myanmar Now) Junta to seize imports from northern Shan Traders told Myanmar Now that the junta has been routinely seizing Chinese-made goods transported through resistance-held areas in northern Shan State, labeling such trade illegal. “Goods from northern Shan can’t pass the Mong Pun checkpoint into southern Shan, and the Kywe Tat Son checkpoint is also difficult due to seizures and arrests,” a trader from Northern Shan said. Most trade occurs within resistance-held areas of Northern Shan because of junta arrests, with only a small amount of goods reaching the rest of Myanmar. Following the 2021 coup, the Illegal Trade Eradication Steering Committee, led by Vice-Senior General Soe Win, was set up in 2022 and has been since seizing goods from the border regions. According to Myanmar military records, 22,198 seizures worth approximately 144 billion US dollars have been reported over the three years up to March, 2025. The junta retook Hsipaw Town from TNLA control this month and reopened the Mandalay-Lashio trade route, closed for nearly two years due to clashes. This has led to the reopening of the Mandalay-Lashio-Muse-Chin Shwe Haw routes. While the route is convenient for travelers, most import/export traders—including those carrying watermelons, cucumbers, and fishery products—still find it difficult, according to some traders. “Fishery products, watermelons, and cucumbers don’t last long, so it’s still difficult under these conditions. The roads are poor, and tax issues need more negotiation. Border trade can’t recover yet,” a trader in the fishery business said. Border traders explained that the resistance forces should set up a standardised tax system that traders can accept, and the junta commission should relax restrictions to revive border trade. While the junta has taken control of Hsipaw Town from the TNLA, there have been no clashes with the MNDAA, which manages the Hsipaw-Lashio trade route. Today, the junta is continuing its offensive against Namtu Town, held by the TNLA.At the same time, residents say, if the junta negotiates with the MNDAA, which holds the largest share of trade, the Chin Shwe Haw–Mandalay route could reopen, but normal trading may still take months to resume. Members of the Arakan Army and Ta'ang National Liberation Army inspect goods at the 105-Mile Trade Zone in July, 2025. The route is for vital trade, controlled by the Brotherhood Alliance. (Photo: Myanmar Now)

Junta reopens key China trade highway after retaking Hsipaw

As Myanmar’s military retakes Hsipaw and reopens the China-bound highway, its gains coincide with Beijing’s diplomatic overtures and growing influence over the conflict’s direction

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