Myanmar's Resource Crisis: How China's Cyber Scams Drain Natural Wealth

It added that by publicly conducting anti-scam operations while backing the military junta that facilitates these activities, China systematically drains Myanmar’s natural wealth behind a facade of responsible international behaviour.

“Myanmar has become ground zero for a disturbing intersection of criminal exploitation and resource abuse, where Chinese-operated cyber scam centres systematically exploit the country’s governance collapse while consuming massive quantities of scarce water and electricity resources. This exploitation represents a calculated strategy by Chinese actors who simultaneously condemn these operations publicly while indirectly benefiting from Myanmar’s chaotic state through resource extraction and infrastructure control,” a report in Mekong News Myanmar detailed.

“The magnitude of Chinese involvement in Myanmar’s cyber fraud industry has reached unprecedented levels. Liu Zongyi, Assistant Minister in China’s Ministry of Public Security, commented in February 2025 that 36 Chinese gangs operate scam centres utilising approximately 100,000 people in forced labour conditions. These operations have transformed Myanmar into the global epicentre of cyber fraud, with the industry now posing an unprecedented threat to international cybersecurity while relying heavily on human trafficking and forced labour,” it added.

According to the report, China's exploitation in Myanmar goes far beyond cyber scam centres, extending to systematic control over hydroelectric infrastructure through Chinese-backed hydropower projects, such as the TarPein hydro plant and Ruli hydro-power plant, which reflect this resource colonisation.

Despite claims that these are joint ventures supposedly benefiting Myanmar, these projects primarily advance Beijing’s interests.

The report stressed that Chinese operations in Myanmar have taken a heavy environmental toll, including catastrophic water resource abuse.

“Myanmar produced 31,000 metric tonnes of rare earths in 2024, making it the world’s fourth-largest producer. Rare earth exports from Myanmar to China reached $4.2 billion in the eight years from 2017-2024, with 84 per cent of all extracted elements ending up exclusively at Chinese processors. Rare earth mining operations, which have surged by 70 per cent in Chinese imports from Myanmar during the first half of 2023, consume enormous quantities of water through toxic leaching processes. These operations require large amounts of water from community sources, leaving local residents suffering from water shortages and reduced crop yields,” it stated.

The exploitation of abuse of Myanmar’s scarce water and electricity resources by Chinese-operated facilities occurs amid widespread poverty and energy insecurity affecting millions of citizens.

“This exploitation exemplifies how powerful nations can leverage weaker states’ internal conflicts to secure strategic advantages while deflecting international criticism through selective enforcement actions,” the report noted.

-IANS

- IANS