Rise of Myanmar’s ethnic alliance as border rulers

Almost two years ago, the Three Brotherhood Alliance (3BHA) seized a key stretch of the Myanmar-China border. They have since established themselves not only as a military force but also as an economic and political power. The Muse 105-Mile Trade Zone and the Kyin San Kyawt border gate are no longer temporary wartime assets; they have become permanent possessions of the alliance. These captured territories now serve as their source of revenue. The border region has turned into a testing ground for how they consolidate governance.

In October 2023, Three Brotherhood Alliance launched the military campaign codenamed Operation 1027 in Muse. Within several months, the Muse 105-Mile Trade Zone came under their control. The alliance—made up of the Myanmar National Democratic Alliance Army (MNDAA), the Ta’ang National Liberation Army (TNLA) and the Arakan Army—has since emerged as one of the most powerful ethnic armed groups in the country.

Before the coup, this trade zone annually handled trade worth $5.5 billion. Now, due to instability, that figure has fallen to just $2.2 billion. The military regime has not only lost revenue but also prestige with the loss of the border. Local traders say the army has forfeited more than just territory; it has lost the economic base needed to sustain its war.

Alongside economic activity, the alliance is also moving into public services. In July this year, 3BHA opened a fully equipped hospital in Mong Yu, near Muse. It offers round-the-clock services including blood tests, X-rays and ultrasound scans. The facility has fulfilled a long-standing demand of people and workers living along the border.

But traders crossing the border still face further costs. At various checkpoints controlled by the Myanmar military and other armed groups, they are forced to pay again. Each time, transport workers must hand over between 200,000 and 700,000 kyat (about $95 to $330) as a “security fee” or levy. Vehicle drivers say: “Now the entire route is lined with checkpoints, not just the border. They collect tolls at every step, and we have to carry extra cash to avoid trouble.”

According to a Chinese logistics company, over 600 vehicles usually travel daily between China’s Yunnan province and Myanmar. Around 400 logistics firms engaged in China-Myanmar trade depend on cross-border commerce. This underlines the economic importance of the checkpoints.

China’s trade has also suffered as a result. Stability at the border is crucial for business. For that reason, Beijing has taken a pragmatic stance—working with whichever side can guarantee order. At present, that side is the 3BHA. This ensures trade keeps flowing, exposes the weakness of the Myanmar military, and allows China to maintain its influence at the frontier.

To further ease commerce, the Three Brotherhood Alliance has introduced an online system inviting Chinese and Myanmar exporters and logistics firms to register. There are no special conditions beyond a commitment to transport goods. Applicants must submit required documents, including a business licence and ID copies, within a week for verification. Approved companies gain access to the station’s customs tax account, enabling quick online tax declarations and vehicle registration. One truck driver told The Irrawaddy: “The first month was tough, but now it’s much easier. After paying online, trucks pass smoothly. Their tax collection system is very fast.”

For the alliance, control of the border gate is more than just an economic win—it is also a display of governance. By collecting taxes and delivering public services, they are presenting themselves as a functional administrative alternative. This strengthens their position in future political negotiations. In Myanmar’s fractured political and economic landscape, the control of Muse has therefore become not just a symbol of trade, but of shifting power.