Myanmar junta launches first official jade sale in China amid sanctions and conflict

Myanmar’s military junta has begun selling jade at an official gems exhibition in China for the first time, as conflict and international sanctions continue to disrupt traditional markets. The Myanmar Gems Emporium is being held from July 22 to 25 in the Jiegao Special Economic Zone in Ruili, a border city in China's Yunnan Province. It marks the first time that Chinese authorities have given the military-owned Myanma Economic Holdings Limited (MEHL) permission to display and sell jade in China. The exhibition is being organised under an agreement between Myanmar’s Ministry of Natural Resources and Environmental Conservation and the Yunnan provincial government. It is led by the military-controlled Myanma Gems Enterprise (MGE), which has been sanctioned by the United States, the European Union, and the United Kingdom. Myanmar’s official jade sales have traditionally been held in Yangon and the capital, Naypyitaw. The move to China comes as Chinese buyers have reportedly become more reluctant to travel to Myanmar because of the country’s civil war and concerns over online scam operations based in border regions. According to records obtained by Myanmar Now, 700 jade lots were submitted for the exhibition by MGE, its joint-venture companies, MEHL, medium-sized gem enterprises, and private companies. Organisers approved 200 lots for sale after selecting them from a shortlist of 500 higher-quality pieces. A gems entrepreneur from Naypyitaw, who spoke on condition of anonymity, said the exhibition was intended both to strengthen ties with China and to gauge market demand. “It is done as a gesture of friendship and to test the market,” he said. The businessman said Myanmar’s military authorities had planned to hold the exhibition in China more than two years ago, but the plan was delayed by last year’s deadly earthquake in Sagaing. He also said the regime intends to hold the Myanmar Gems Emporium in China annually for the next five years. The exhibition is limited to the border city of Ruili rather than larger cities inside China. The entrepreneur said most of the jade being offered belongs to MGE and its joint-venture companies, adding that relatively few private companies chose to participate. “They are gems that were being shown domestically. They picked what they thought would be somewhat good to display. Few companies participated; most companies didn’t,” he said. He added that the unstable situation along the Myanmar-China border has disrupted the illicit jade trade, adding that some of the jade now being sold through the official exhibition might otherwise have been smuggled into China if cross-border routes had remained more accessible. According to documents reviewed by Myanmar Now, the jade was transported by air, with logistics company Innocraft serving as the insured carrier responsible for losses or damage during transport, storage and the exhibition. The jade is being sold through a competitive tender system. Buyers will have 21 days to complete payments, which must be made in Chinese yuan, requiring participating companies to open yuan-denominated bank accounts. Myanmar’s military junta has increasingly accepted payments in Chinese yuan for gem sales as international sanctions and financial restrictions have complicated access to the global banking system. The anti-regime National Unity Government (NUG) has urged businesses and buyers not to participate, saying the junta’s gem emporiums are illegal. A 2021 report by the UK-based advocacy group Global Witness estimated that MGE generated between US$346 million and $415 million in annual revenue. The report said the value of Myanmar’s jade industry could reach as much as $2 billion a year when illicit mining is included. The NUG and human rights organisations have repeatedly called for international sanctions and boycotts targeting Myanmar’s gem, oil and natural gas industries, arguing that revenue from natural resources helps finance the junta’s military operations.

Myanmar junta launches first official jade sale in China amid sanctions and conflict

The move comes amid tightening sanctions against the regime and safety concerns among Chinese buyers

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