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The chaos has also spurred illegal economies—most notably the drug trade. Since 2021, there has been a surge in synthetic drug production, especially methamphetamines like Yaba tablets, which have seen production quadruple. Crime networks exploit ungoverned border areas for trafficking, further destabilizing the region.

External Influences and China’s Pivotal Role

China’s long border with Myanmar—over 2,000 kilometers—places it at the geopolitical heart of the conflict. Historically, China has maintained a complex relationship, providing diplomatic, economic, and military support to both the Myanmar military and various ethnic insurgencies.