November 2, 2023
Trade through Myanmar's largest border gate, Chin Shwe Haw, has stopped as a resistance offensive in the region intensifies. The offensive, launched by three ethnic armed organizations on October 27, has led to heavy fighting between the rebels and the junta.
The closure of the border gate has had a significant impact on trade between Myanmar and China. In the first nine months of 2023, more than a quarter of Myanmar's border trade with China passed through Chin Shwe Haw.
The closure of the border gate has also caused prices of goods in Myanmar to rise. For example, the price of Chinese potatoes in Yangon has gone up as new shipments cannot travel through the border route.
The resistance offensive in northern Shan State is the latest challenge to the junta, which has been struggling to maintain control of the country since it seized power in a coup in February 2021.
The junta has responded to the offensive by launching airstrikes and ground attacks against rebel positions. However, the rebels have so far been able to withstand the junta's offensive.
The closure of the border gate and the intensification of the resistance offensive are further signs of the instability in Myanmar. The situation is likely to remain volatile in the coming weeks and months.
Impact on the Global Economy
The closure of Chin Shwe Haw is likely to have a negative impact on the global economy. Myanmar is a major exporter of jade, gemstones, and other natural resources. The closure of the border gate will disrupt the supply of these goods to global markets.
The closure of the border gate is also likely to lead to higher prices for goods imported from China. China is a major exporter of manufactured goods, including electronics, textiles, and machinery. The closure of the border gate will make it more difficult and expensive to import these goods into Myanmar.
The overall impact of the closure of Chin Shwe Haw on the global economy is likely to be modest. However, the closure is a reminder of the risks posed by the instability in Myanmar.
