Holding China Accountable: Targeted Tariffs and Sanctions to Counter its Support for Myanmar’s Military Regime

China's steadfast backing of Myanmar's military government, despite irrefutable evidence of atrocities against the Rohingya population, highlights Beijing's prioritization of geopolitical dominance over human rights. By fostering robust economic ties with Myanmar's junta, China provides vital financial and diplomatic support to a regime implicated in ethnic cleansing, political repression, and widespread human rights abuses.

Amid the ongoing U.S.-China trade tensions, Washington has a unique opportunity to reshape its economic strategy to align with democratic values and human rights advocacy. Instead of broad, reactionary tariffs, the U.S. should focus on targeted economic measures against Chinese industries and entities that directly benefit from Myanmar’s military regime. This strategy would both disrupt the financial underpinnings of the junta and strengthen America’s global stance as a defender of human rights.

Myanmar’s Strategic Value to China

China’s support for Myanmar’s military regime is intricately tied to its broader geopolitical and economic objectives, particularly through initiatives like the Belt and Road Initiative (BRI) and the China-Myanmar Economic Corridor (CMEC). Myanmar provides China with several critical advantages:

• Key Trade and Energy Route: The CMEC grants China direct access to the Indian Ocean, reducing its dependence on the Strait of Malacca for trade and energy imports. Operational since 2013 and 2017 respectively, the oil and gas pipelines connecting the Bay of Bengal to China’s Yunnan province bolster China’s energy security.
• Abundant Natural Resources: Myanmar is rich in jade, timber, rare earth minerals, and hydropower—resources essential to China’s industrial supply chains. Chinese companies dominate Myanmar’s extractive industries, often partnering with military-owned businesses.
• Strategic Buffer Against Western Influence: Myanmar serves as a geopolitical buffer between China and India, enabling Beijing to counter Western influence in Southeast Asia. By supporting the military regime, China ensures Myanmar remains within its sphere of influence and avoids democratic shifts that could align it with the U.S. and its allies.

China’s Direct Support for Myanmar’s Military Government

China has consistently protected Myanmar’s military from international scrutiny by using its veto power at the United Nations Security Council to obstruct significant measures against the junta. Meanwhile, Chinese state-owned enterprises and private businesses continue to engage in profitable dealings with Myanmar’s ruling generals, bolstering their grip on power. Key sectors where China directly supports Myanmar’s military regime include:

• Energy and Infrastructure: China’s investments in Myanmar’s oil, gas, and hydropower sectors yield substantial revenue for the junta. These infrastructure projects bolster the military regime's economic stability while further establishing China’s economic influence in Myanmar.
• Weapons and Military Supplies: China remains a key provider of arms, drones, and surveillance technology to Myanmar’s military, enabling the forceful suppression of opposition groups and ethnic minorities.
• Mining and Rare Earth: Chinese companies directly collaborating with businesses connected to Myanmar’s military dominate the extraction of jade, timber, and rare earth minerals. These industries cause significant environmental harm and act as essential revenue sources for the junta.

Strategic Economic Measures to Counter China’s Support for Myanmar

To effectively counter China’s support of Myanmar’s military regime while promoting human rights, U.S. economic policy must be precise and strategic. Broad tariffs that negatively impact American businesses and consumers should be replaced with targeted economic measures directed at Chinese entities benefiting from the junta's rule.

1. Sanctions on Chinese State-Owned Enterprises and Military-Linked Businesses: The United States should implement robust Global Magnitsky Act sanctions targeting Chinese enterprises that significantly facilitate trade, arms sales, or financial transactions with Myanmar’s military government. By escalating the financial risks associated with engaging with the junta, these sanctions would serve as a powerful deterrent against further economic collaboration, undermining its funding sources and limiting its operational capabilities.
2. Import Bans on Chinese Goods Linked to Myanmar’s Military: Drawing inspiration from the Uyghur Forced Labor Prevention Act, the U.S. must expand its import restrictions to encompass materials sourced from industries controlled by Myanmar’s military, particularly those involving precious jade, valuable rare earth minerals, and essential timber. Many of these crucial materials are exported to China before entering broader global markets; thus, a carefully targeted ban could effectively disrupt a critical revenue stream that sustains the military regime and its activities.
3. Tariffs on Chinese Firms Operating in Myanmar’s Energy and Infrastructure Sectors: Chinese energy corporations are reaping significant profits from Myanmar’s thriving oil and gas pipelines, with the junta benefiting from substantial transit fees. The U.S. should impose sector-specific tariffs on these Chinese firms engaged in Myanmar’s energy sector, thereby amplifying Beijing's economic burden for its continued support of the military government. Though these tariffs would be precisely targeted, they could profoundly impact China’s energy sector, potentially destabilizing its energy security and financial equilibrium.
4. Crackdown on Tariff Evasion and Supply Chain Laundering: Numerous Chinese companies have circumvented U.S. tariffs by cleverly routing goods through Myanmar and other third countries. To combat this illicit practice, the U.S. must bolster customs enforcement efforts to close these loopholes, ensuring that companies complicit in supporting Myanmar’s junta can no longer gain unimpeded access to American markets. Successfully enforcing these measures will necessitate a comprehensive and coordinated approach involving various government agencies and international partners.
5. Leverage Diplomatic and Trade Alliances to Pressure China: The U.S. should proactively engage with key international partners such as ASEAN, the European Union, and the Quad, comprising the U.S., India, Japan, and Australia, to collaboratively coordinate sanctions and trade restrictions aimed at curtailing China’s economic support for Myanmar. A unified multilateral strategy would not only strengthen enforcement mechanisms but also send a resounding message of international opposition to China’s complicity in the junta’s egregious actions. This collective effort could significantly heighten the pressure on China, making it increasingly challenging for them to evade the sanctions imposed.

Moral Leadership in Economic Policy

By implementing these targeted economic measures, the United States can reaffirm its commitment to human rights while strategically countering China’s support for Myanmar’s military regime. Although I typically do not endorse tariffs as a policy tool, they should serve a clear moral and strategic purpose if enacted. Broad, indiscriminate tariffs do little to enhance America’s reputation as a leader in global justice and human rights. Instead, economic pressure must be applied precisely where it is most effective: against the financial and industrial networks that bolster oppressive regimes.

A well-calibrated approach would undermine Myanmar’s military government and demonstrate that economic policies can promote global justice. Washington must seize this opportunity to hold China accountable and reinforce a foreign policy prioritizing strategic interests and human rights.