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Myanmar’s Kachin state at the heart of illicit economy

As the convoy of trucks laden with precious Burmese teak and sandalwood snakes its way into China from Myanmar, it comes perilously close to a ravine in the Himalayan foothills of Yunnan province.

The caravan of timber being transported to China hails from Myanmar’s lawless northern state of Kachin. The resource-rich region bordering China and India is at the centre of a multibillion-dollar illicit economy fuelled by mining, logging and drug trafficking, according to observers and law enforcement officials.

The war-torn state is also at the heart of a power struggle between China’s encroaching economic interests in Myanmar and the battle-hardened ethnic militias engaged in fragile peace talks with the quasi-civilian government in Naypyidaw.

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