US Lifts Sanctions on Myanmar Military Allies Amid Rare Earth Tensions with China

The United States has lifted sanctions on several key allies of Myanmar’s military junta, just weeks after junta leader Min Aung Hlaing praised President Donald Trump and urged Washington to ease economic restrictions.

According to a notice from the U.S. Treasury Department, entities and individuals removed from the sanctions list include KT Services & Logistics and its founder Jonathan Myo Kyaw Thaung, MCM Group and owner Aung Hlaing Oo, Suntac Technologies and owner Sit Taing Aung, and businessman Tin Latt Min. These parties were previously sanctioned between 2022 and 2024 under the Biden administration for ties to Myanmar’s defense sector and close association with the ruling generals following the 2021 coup.

The Treasury provided no explanation for the removals, and the White House has not commented. The move comes after Min Aung Hlaing sent a letter to Trump on July 11 requesting a reduction of the new 40% U.S. tariff on Myanmar exports, proposing a rate of 10–20% in exchange for lowering Myanmar’s levies on U.S. imports. The junta leader also urged Washington to reconsider broader sanctions, citing mutual economic benefits.

Myanmar is a critical supplier of rare earth minerals, essential for defense and high-tech applications. The country’s deposits are central to U.S. strategic competition with China, which controls about 90% of global rare earth processing. Most Myanmar mines are located in Kachin Independence Army-controlled areas and are processed in China, underscoring the geopolitical stakes behind the sanctions decision.

This development signals a potential shift in U.S.-Myanmar relations as Washington seeks to secure rare earth supply chains amid rising tensions with Beijing.