Myanmar junta blocks China border trade routes controlled by MNDAA

Myanmar’s military junta is preventing goods from entering northern Shan State from China under what authorities describe as a “100-day plan,” according to merchants, transport operators, and residents. Traders said inspections and seizures began May 4 at checkpoints in Hsipaw, Namlan and Mongyai townships, targeting Chinese goods entering the country through border gates controlled by the Myanmar National Democratic Alliance Army (MNDAA). “Not even a single parcel can get through,” said one merchant who asked not to be identified. “They tear them open to inspect them, and if there’s Chinese writing on it, they confiscate everything. They just say it’s part of a ‘100-day plan.’” The restrictions have nearly halted freight transport operations in northern Shan State, according to transport companies and traders. “Since it’s a ‘plan,’ nobody dares to transport anything,” said a freight operator in Muse, the main trading town on the Chinese border. “The gates have to be selective about what goods they accept. We are relying only on passengers now. We don’t know how long this will last.” Passengers also reported strict inspections at checkpoints, including searches of personal belongings and identity checks. “They ask for IDs and force open bags to check for new clothes,” one traveller said. “It’s not even easy to travel anymore.” Residents said authorities have restricted even small quantities of fruit intended for personal consumption. As a result, Chinese goods entering through MNDAA-controlled border crossings can no longer move along major trade routes linking northern Shan State to central Myanmar, including the Hsipaw-Nawnghkio-Pyin Oo Lwin-Mandalay road and routes connecting southern and eastern Shan State. The disruption comes as the MNDAA has consolidated control over key border trade zones in northern Shan following gains made during Operation 1027, a major anti-junta offensive launched in late 2023 by an alliance of ethnic armed groups. The MNDAA seized the border towns of Chin Shwe Haw, Laukkai, Konkyan and Pang Hseng during the offensive. In March, the group also captured Kutkai, previously controlled by its ally, the Ta’ang National Liberation Army (TNLA). The MNDAA later tightened its control of border trade by taking over TNLA positions along routes to the 105-Mile trade zone and Kyin San Kyawt border crossing near Muse and removing checkpoints set up along the Kutkai-Muse route by other ethnic armed groups, including the Kachin Independence Army and the Shan State Progress Party. Analysts and traders say the developments have left the MNDAA in control of most major border trade gateways between China and northern Shan State. Although the ethnic Kokang armed group handed Lashio back to the regime last year following Chinese mediation efforts, the MNDAA still controls routes critical to trade access, including roads linking Lashio to southern Shan State and Mandalay. Merchants said Chinese authorities continue to allow trade through MNDAA-controlled border gates, including Chin Shwe Haw and Kyin San Kyawt in Muse. Imports from China largely consist of food products, electronics, agricultural machinery and textiles, traders said, while exports from Myanmar are limited to products such as watermelons, sugarcane and corn. “For food, it’s mostly seafood and snacks for children,” said a trader in Muse. “Battery-powered motorcycles, bicycles, cigarettes and beer are also common imports.” China resumed border trade with northern Shan State in January last year after a ceasefire agreement between the MNDAA and Myanmar’s military regime. However, the junta has continued to classify goods entering through MNDAA-controlled routes as “illegal,” according to traders and residents. “Trade has existed in northern Shan State for a long time,” said a resident of Hsipaw. “But with the military closing the Hsipaw bridge and blocking goods, how can trade continue? Only the locals and merchants suffer.” The military has kept the Hsipaw bridge closed since November of last year—a month after retaking the town from the TNLA—citing efforts to prevent illegal goods from entering the country. Political analysts say the reopening of the Muse-Mandalay trade corridor will likely depend on negotiations among China, the MNDAA and the junta. “It seems there are still unresolved issues with the Kokang group,” said a Yangon-based political observer. “Since the military never wanted the Kokang controlling that route, trade issues will not be easy until some kind of agreement is reached.”

Myanmar junta blocks China border trade routes controlled by MNDAA

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