Pajau Media
26th February 2025
Despite the regular opening of the border trade gates between the two nations in the KIA-controlled region, local inhabitants report that the prices of goods in the border area continue to increase, attributed to diminished trade flows from China and elevated taxation.
Local residents attribute the inconsistent flow of goods and elevated prices to the necessity of obtaining permits and paying taxes to both the KIA and the Chinese authorities for the transportation of goods through the Pang Wa Gate.
“Individuals intending to cross the border, whether as merchants or travelers, are required to submit an application at the local office prior to their journey. Following the submission, the application must be presented at the China border office to facilitate passage into China. Additionally, it is important to note that tax obligations have risen, consequently affecting the pricing of goods,” as stated by a woman from Pang Wa.
The rise in prices is linked to the limitations imposed on the import and export of goods from China at border crossings, as well as the prohibition on the trade of certain items. Additionally, reports indicate that in January, fuel was illicitly transported from China and offered for sale at reduced prices.
The border gate in Mai Ja Yang is currently closed by China, resulting in goods being transported solely from Muse, which is contributing to an increase in prices.
The Mai Ja Yang gate remains closed at this time. While the Kachin side is accessible, the Chinese side is not operational. Goods are currently being imported through Muse, and individuals can also travel from Muse. Consequently, all exports are routed through this location, which is a contributing factor to the elevated prices, as stated by a resident of Mai Ja Yang.
At present, in the Pang Wa area, the price of a liter of fuel, equivalent to a large can of Coca Cola, is 40 Chinese yuan, which is approximately 30,000 Myanmar kyats. In contrast, in Mai Ja Yang, the same liter of fuel is priced at 15 Chinese yuan, translating to between 10,000 and 15,000 Myanmar kyats.
Border gates in Kachin State were shut in October 2024 following the capture of Pang Wa, but they were reopened on December 13 through a mutual agreement between the Chinese government and the Kachin Independence Organization (KIO). Nevertheless, the transport of goods is restricted, as they are not permitted to enter or exit from the Chinese side at Mai Ja Yang, with all movement occurring solely from the Muse side.
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