China slowdown, fraud crackdown weigh on Myanmar jade prices

Photo – A jade market in Mandalay city is seen on May 16. Bangkok Post Jade prices are falling in the jade market in Mandalay, central Myanmar, as a result of China's economic slowdown and a reduction in purchases by Chinese-linked international criminal gangs following crackdowns on fraud syndicates, traders said. "The big bubble has burst," said one trader, referring to the decline in sales and prices in the jade market, which has long relied on overseas demand. Mandalay is the main hub for cutting, polishing, and trading jade, while northern Myanmar's Kachin State is home to some of the world's largest and most profitable jade mines. The Myanmar market is also a key hub connecting jade-producing regions with buyers from China, Taiwan, and the Chinese diaspora worldwide, who consider jade a valuable item that brings good fortune. Unlike gold, jade has no international benchmark price. Instead, its value is determined individually based on the clarity and color of each stone, making transactions heavily reliant on visual inspection and price negotiation between buyers and sellers. At the market in mid-May, raw jade stones for sale were lined up, with brokers inspecting their quality. Brokers held lights to the clear, green-cut surfaces of raw jade stones to ensure clarity before negotiating prices. In another section of the market, Chinese buyers had set up stalls, evaluating and purchasing jade brought by Myanmar sellers. Transactions were finalized only after individual inspection and discussion of quality and value. A broker said that while prices for mid-range jade had risen from 2021 to 2023, they have been gradually declining since 2024. "The system of relying on money from China and criminal activities is unsustainable," he explained, referring to the market's structure. The expansion of online scam operations in Southeast Asia during the COVID-19 pandemic coincided with the rise in jade prices at the time. Another trader said that jade prices began to fall after the Myanmar junta launched a series of crackdowns on scam networks starting in 2023. He noted that everyone in the jade industry knew that money laundering was boosting the market, and that legal actions had changed the situation. Traders also pointed out that Myanmar's general instability has affected the jade sector. Since the 2021 military coup, increased fighting between ethnic armed groups and the junta has led to a decrease in jade production from mining areas in Kachin State. Despite falling prices since 2024, transactions continue to take place in the Mandalay jade market, according to traders and brokers. China slowdown, fraud crackdown weigh on Myanmar jade prices by Bangkok Post, translated by Moe Thet. The post China slowdown, fraud crackdown weigh on Myanmar jade prices appeared first on BUR.MIZZIMA.COM.