A surprise offensive by armed groups in Myanmar that has blocked two strategically vital roads to the country’s biggest trading partner, China, is choking cross-border commerce and denying the cash-strapped junta taxes and foreign exchange.
Fighting has raged across northern Shan state for two weeks, displacing almost 50,000 people, the US has said, and posing the most serious military challenge to the generals since they seized power in 2021.
The blockage to key transport arteries is already leading to higher prices in markets and hampering the junta’s ability to send reinforcements to tackle the offensive.
Photo: The Kokang online media via AP
“We haven’t seen any [goods] trucks since the fighting started” on Oct. 27, a resident of Muse town on the border with China said.
“There is no trade crossing,” and artillery and gunfire were heard regularly from the town, they said, requesting anonymity for safety reasons.
Hundreds of trucks a day normally pass through, taking fruit and vegetables into China or bringing back electronic equipment, medicine and consumer goods.
In the town of Lashio, about 160km away by road, residents said they were feeling the effects of the fighting.
“One bag of rice was 160,000 kyat [US$76] before fighting,” one resident said, also requesting anonymity for safety reasons.
“The current price is 190,000 kyat... if there is going to be long fighting, we will have a hard time to survive,” they said.
Goods traffic from Muse has all but halted since fighters from the Arakan Army, Myanmar National Democratic Alliance Army (MNDAA) and Ta’ang National Liberation Army launched their offensive on Oct. 27.
Chinshwehaw, another hub on the border with China’s Yunnan Province, is also closed for business.
Last week, the MNDAA posted footage of its fighters raising their flag at the border gate. The junta later said that it had lost control of the town.
A longer border closure would “negatively impact Myanmar balance of trade, current account and availability of foreign exchange,” said Richard Horsey, senior adviser for Myanmar at the International Crisis Group.
Of more immediate strategic importance is the military’s loss of control of the roads along which it sends troops, analysts say.
“Deploying troops into northern Shan has become increasingly difficult, and the military is now relying on helicopters to send reinforcements into the border area,” said Jason Tower, country director for the Burma program at the United States Institute of Peace.
The military would find it “difficult” to take back border infrastructure lost in the previous two weeks, he said.
“While it could launch air strikes to take back positions, it would risk infuriating China by destroying critical infrastructure,” he said.
Meanwhile, a close ally of Myanmar’s top general has been imprisoned for five years on corruption charges, state media said yesterday.
Former Burmese deputy prime minister and minister for home affairs Soe Htut was removed from the ruling State Administration Council, as the junta calls itself, in a September reshuffle.
“He was indicted under relevant sections of laws and the Court Martial adjudicated his cases and sentenced him to five years imprisonment,” state media outlet The Global New Light of Myanmar reported yesterday.
Soe Htut ordered subordinates to issue passports to companies operating in the country by “inappropriately applying his rank and authority,” the newspaper said.
It added that he “took bribes and failed to supervise the undertakings not aligned with the financial rules and regulations for the staff welfare fund of the Ministry of Home Affairs.”
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