Northern Shan State facing squeeze as Myanmar junta, opponents block each other’s trade

The noose is tightening around the northern Shan State border hub of Muse as it faces a new blockade by anti-junta forces a month after losing access to trade with neighbouring China. On October 22, China closed its border gates at Muse and Mongla as part of its effort to pressure ethnic armed groups based along the border to end their offensive against Myanmar’s military junta. Since then, however, the anti-regime groups that have seized a wide swathe of territory across northern Shan State over the past year have also moved to isolate Muse, Myanmar’s most important gateway into China and one of the few border towns still under junta control. According to a business source in the town, the Ta’ang National Liberation Army (TNLA) began blocking shipments of fuel and other goods into Muse after the junta started restricting the use of a key road linking northern and southern Shan State last week. “We can no longer use the Lawksawk-Kyauk Gu road. It’s now only open to buses with Shan State registration. And only passengers are allowed—cargo is completely banned,” the source said. The move, which was clearly aimed at cutting off the TNLA-controlled town of Nawnghkio from the south, prompted the group to respond in kind. “It’s a counter-block. The junta blocked access to the territories controlled by the ethnic armed groups, so the flow of essential goods, particularly fuel, to Muse through the liberated areas has also been halted,” the source added. While some goods are still able to reach northern Shan State from the state capital Taunggyi via a more circuitous route through the towns of Hopong, Laihka, Kyethi, and Mongyai, junta checkpoints continue to hinder trade, resulting in a spike in prices. In Muse, a litre of petrol now costs around 12,000 kyat, or roughly US$2.70, and shortages have been widely reported. Most of the fuel entering Muse from within Myanmar passes through Namkham and Kutkai, which are both under the control of anti-regime forces. While a trickle has managed to get into the town, it is far from enough, according to a resident who spoke to Myanmar Now. “All the petrol stations are closed for now, so we can only buy from outside dealers. But they’re just bringing in a barrel at a time—one person smuggles in a barrel to resell, then someone else brings in another one. That’s all we’re getting right now,” he said. According to a border trader, other goods have been similarly affected. “It’s the same with everything,” she said. To alleviate the situation, China has loosened its restrictions at two of Muse’s three border gates, allowing some vehicles to cross the border with food and other basic necessities. “They’re now allowing trucks loaded with potatoes and motorcycles with hand-carry bags of food products to pass through,” said a resident of Muse. However, the fact that the conflict along the border remains unresolved means that China will likely continue to use its ability to throttle trade to keep up pressure on the ethnic armed groups fighting Myanmar’s military junta. Indeed, the regime says that China has agreed to do precisely that. On Thursday, state media reported that Myint Kyaing, the junta’s immigration minister, was assured during a visit to the Chinese town of Ruili, opposite Muse, this week that border gates would remain closed. This came in response to a request made by the leader of the coup regime, Min Aung Hlaing, during a visit to China earlier this month—his first to the country since seizing power nearly four years ago. So far, however, Chinese pressure has done little to deter ethnic armed groups from pressing on with their offensives. On Wednesday, the Kachin Independence Army seized control of Kan Paik Ti, a town on Kachin State’s border with China. And while China may allow some goods to flow into Muse despite its blockade, both it and its junta ally will continue to lose billions of dollars in trade revenue as long as the Myanmar side of the 1,300-mile border remains almost entirely in the hands of regime opponents. “Since the ethnic armed groups control so much territory now, nothing can cross the border except through them. That means lost taxes [for China and the junta], and limited access to consumer goods, medicines, and even military equipment,” said a Muse-based trader.

Northern Shan State facing squeeze as Myanmar junta, opponents block each other’s trade

Muse, the most important gateway to China, finds itself at the centre of efforts to use trade to manage the conflict in the border region

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