Myanmar's Rare Earth Riches: China's Got a Problem, Problem!

Rare Earths: The New 'Blue Sky' Meth?

Alright folks Saul Goodman here your friendly neighborhood attorney and occasional geopolitical strategist (don't ask). Word on the street – or rather the internet – is China's got a hankering for rare earth minerals those shiny little rocks that make your phones missiles and even those fancy electric scooters work. And guess where they're gettin' it? Myanmar! Turns out the land of golden pagodas is also a goldmine – well a rare earth mine – for China. It's like Walter White finding out his RV was parked on a gold deposit only way more complicated and with a whole lotta political drama thrown in! Last year a whopping 57% of China's rare earth imports came from Myanmar. Talk about putting all your eggs in one basket!

Heavy Metal: Not Just the Music Genre Anymore

Now these aren't just any ol' rare earths oh no. We're talkin' about the heavy stuff – dysprosium and terbium to be exact. Sounds like something out of a science fiction movie right? These bad boys are essential for high tech manufacturing. I'm talking defense aerospace renewable energy...the whole shebang! Apparently Myanmar's got the goods and China's hooked. It's like finding out that the quiet kid in class is secretly a world class DJ. Who knew right?

Environmental Nightmare: 'Yeah Science!'...With Consequences

Here's where things get a bit…murky even by my standards. Turns out extracting these rare earths isn't exactly environmentally friendly. They're using some nasty leaching methods that involve dumping chemicals all over the place. Think about it: what's worse cooking meth in an RV or poisoning the entire landscape in pursuit of rare earth riches? According to the experts these extraction methods were common in China but as Beijing tightened environmental regulations these operations were outsourced to Myanmar. It's like when you finally get a warning for disturbing the peace in your city so you move to a new town and do it again.

Kachin Kachow!: Civil War and Rare Earth Chaos

Of course nothing's ever simple is it? Myanmar's in the middle of a civil war and the Kachin Independence Army (KIA) – a group of armed rebels – has seized control of some key rare earth mining sites. In fact the KIA seized sites responsible for HALF the world's heavy rare earths production. Supply disruptions have caused spikes in the prices of some heavy rare earths. It's like the Heisenberg of geopolitics is holding the rare earth supply hostage! China naturally is sweating bullets. I mean relying on a war torn country for your crucial resources? Not exactly a 'Plan and Execution' kind of strategy is it?

Diversify or Die: China's New Game Plan

So what's China gonna do? Well they're looking to diversify of course. They're eyeing up other countries like Malaysia and Laos but apparently environmental standards there are a bit higher. Imagine that! Now China's decision to cut back on its own extraction of heavy rare earth elements may serve as a warning to other countries about the costs of developing such projects. A report by Chinese media group Caixin in 2022 documented how former IAC operation sites in Southern China had left behind toxic water and contaminated soil hurting local farmers' livelihoods. Well that is what happens when you try to have your cake and eat it too.

Better Call Saul for Risk Management!

Bottom line? China's rare earth reliance on Myanmar is a risky business. Political instability environmental concerns and rebel armies seizing mines? That's a recipe for disaster! And if there's one thing I know it's disaster. If only they'd called Saul Goodman sooner. I could've negotiated a 'better call' solution maybe even convinced the KIA to switch to a less… explosive revenue stream. But hey what do I know? I'm just a humble lawyer with a knack for getting people out of sticky situations. Speaking of which if you ever find yourself needing some 'rare' legal assistance you know who to call. Saul Goodman attorney at law. I fight for you! *Disclaimer: I do not handle cases involving toxic waste or armed rebellions. Unless the price is right.*