Myanmar junta tightens restrictions on transport of Chinese goods at border

Myanmar’s military junta has tightened restrictions on the transport of Chinese-made goods from the border town of Muse, with merchants and truck drivers reporting intensified inspections, seizures, and arrests since early August. Muse, in northern Shan State, is home to Myanmar’s largest trade zone with China. Merchants and drivers said junta checkpoints on roads from the town, including those to Lashio and Namhkam, have effectively barred the movement of Chinese goods, even in small quantities. The junta classifies a wide range of goods arriving from areas along the Chinese border controlled by ethnic armed organisations (EAOs) as illegal, including consumer products, food, electronics, construction and industrial materials, medicine, fuel, unlicensed vehicles, forest products, and minerals. “Previously, they allowed a little bit to come through if you reached a mutual understanding, but now they don’t let you transport anything at all,” said a Muse-based merchant, speaking on condition of anonymity. “As soon as you leave Muse, all Chinese goods are blocked.” The restrictions are part of a broader campaign against what the junta calls illegal trade. The Illegal Trade Eradication Steering Committee was reconstituted after the February 2021 coup, with joint inspection teams involving the customs department, other government agencies, and security forces. Merchants said inspections have also intensified at Muse’s border gates. At the Sinphyu Gate, more than 10 departmental teams inspect goods, according to one merchant. Small quantities intended for household use may be permitted, but larger shipments are generally rejected. A cargo truck driver travelling between Muse and Mandalay said Chinese goods allowed into Muse are subject to further restrictions on their movement to other towns. “Even a carton of apples or a single pair of shoes won’t pass. If there is Chinese writing on it, it’s a no-go,” the driver said. The crackdown has prompted merchants to seek alternative routes, but drivers said junta checkpoints have also begun intercepting shipments travelling on bypass roads. Many traders have instead shifted business to the Kyin San Kyawt border gate, about eight miles from Muse’s 105-Mile trade zone and controlled by the Brotherhood Alliance, a coalition of ethnic armed groups that captured wide swathes of northern Shan State during Operation 1027, an anti-junta offensive launched in late 2023. “Since entering and exiting Muse is tight, everyone is ending up on the Kyin San Kyawt side,” said a merchant based at the 105-Mile trade zone. “On this side, whether you’re bringing goods from China or sending them into China, you just pay taxes to the Brotherhood Alliance and that’s it. There is no confiscation.” Some merchants are also using the Chin Shwe Haw border gate in the Kokang area, though traders said goods entering through Chin Shwe Haw and Kyin San Kyawt generally cannot be transported into junta-controlled towns outside northern Shan State. A police checkpoint on the road from Kunlong to Chin Shwe Haw, controlled by the MNDAA (Photo: Myanmar Now) Restrictions extend along Muse-Lashio route The crackdown has also spread along the Muse-Lashio trade corridor. The Myanmar National Democratic Alliance Army (MNDAA), a member of the Brotherhood Alliance, seized major Chinese border trade hubs, including Chin Shwe Haw and Laukkai, during Operation 1027. The group also controls key sections of the main trade routes from Muse to Hsipaw and Mongyai. Although the MNDAA gave up control of Lashio, northern Shan State’s largest city and a major hub on the Muse-Mandalay route, last year following Chinese-mediated negotiations, the Lashio bypass road remains under the group’s control, according to local merchants. In junta-controlled Lashio, merchants said authorities are conducting inspections at three entry and exit points to prevent Chinese goods from entering the city. “Since Chinese goods are no longer allowed into the city, merchants have to rent warehouses outside the city to store things,” said a Lashio-based merchant. “Shops inside the town don’t dare keep much stock because raids keep happening continuously.” Merchants and drivers said junta authorities are also intercepting Chinese goods travelling through border areas controlled by the Brotherhood Alliance around Hsipaw, Namlan, and Mongyai. Drivers using back roads toward Mandalay and Taunggyi have faced inspections at checkpoints in Pyin Oo Lwin and Mong Pan, they said. Pro-junta media outlets have reported near-daily seizures in August of Chinese-made food, electronics, textiles, and machinery lacking evidence of tax payments at checkpoints in Kyethi, Kalaw, Mong Pan, Panglong, and Hopong. Drivers carrying Chinese goods face prosecution under Myanmar’s Export and Import Law, which provides for prison terms of up to three years, and the Customs Law, which carries sentences of up to seven years. Vehicles used to transport the goods can also be confiscated. An official at a cargo terminal in Muse, who declined to be identified, said at least 10 drivers had been arrested in August. Junta data show 2,240 illegal-trade cases were recorded in 2021, involving goods valued at 8.459 billion kyat (around US$2 million). From January 2022 through June 2025, authorities reported 25,231 seizures involving goods and related items worth about 663.919 billion kyat (around $150 million). The figures do not separately identify goods seized specifically at the Chinese border, making it difficult to determine the scale of the junta’s current crackdown on Chinese imports.

Myanmar junta tightens restrictions on transport of Chinese goods at border

Merchants and drivers say the regime has stepped up efforts to block the flow of goods through areas controlled by ethnic armed groups

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