The jade trade in Myanmar consists of the mining, distribution, and manufacture of jadeite—a variety of jade—in the nation of Myanmar (Burma). The jadeite deposits found in Myanmar's northern regions are the source of the highest quality jadeite in the world, noted by sources in China going as far back as the 10th century. Chinese culture places significant weight on the meaning of jade; as their influence has grown in Myanmar, so has the jade industry and the practice of exporting the precious mineral.

Myanmar produces upward of 70 percent of the world's supply of high-quality jadeite. Most of the Myanmar's jadeite is exported to other nations, primarily Asian, for use in jewellery, art, and ornaments. The majority of the production is carried out by Myanma Gem Enterprise (MGE), a state-owned venture which has enough liquid assets to run itself for 172 years.

Geography of jade deposits Jadeite in Myanmar is primarily found in the "Jade Tract" located in Lonkin Township in Kachin State in northern Myanmar which encompasses the alluvial region of the Uyu River between the 25th and 26th parallels. Present-day extraction of jade in this region occurs at the Phakant-gyi, Maw Sisa, Tin Tin, and Khansee mines. Khansee is also the only mine that produces Maw Sit Sit, a type of jade. Mines at Tawmaw and Hweka are mostly exhausted. From to 1964 to 1981, mining was exclusively an enterprise of the Myanmar government. In 1981, 1985, and 1995, the Gemstone laws were modified to allow increasing private enterprise. In addition to this region, there are also notable mines in the neighboring Sagaing District, near the towns of Nasibon and Natmaw and Hkamti.

Extraction of jade

Much of the extraction of jade in Myanmar is done by “boulder mining” which consists of removing the “overburden” layer of alluvial material to expose the rocks below, then separating the jade containing rocks and discarding the waste in a river. It is also found as water-worn pebbles in riverbeds. The skin of the boulder varies in thickness depending upon whether it is from the alluvial district or from the surrounding hills. Many of the old practices, mentioned in older books, have long since been abandoned. Now, modern methods are used. At the Maw Sisa mine, for example, large boulders are extracted by heavy earth-moving machines and then moved by truck to the nearby river for washing and processing. Since the jade is often encased in stone and cutting into the stone can harm the quality of the jade, a variety of methods were previously used to be employed by miners and merchants to identify jadeite containing stones, including observation for surface coloration, identification of the sound made upon tapping them with metal tools, and feeling of subtle differences in surface adhesion of the rock to skin when in water. These practices have mostly been abandoned. Today, Myanma Gems Enterprise (MGE) cuts through the whole boulder to reveal pockets of jade (see previous citation).

Background Jade holds a significant place in the Chinese culture as it is believed to be a bridge between heaven and hell. This belief stems from the antiquity associated with the gem as well as the virtues of righteousness and knowledge it symbolizes. Jade's virtues, such as fine texture, immense toughness and high hardness, contribute to the high luster and transparency, as well as the durability to withstand a high polish. The Chinese believe that the wearer of jade will be constantly reminded of the strength in resilience and toughness that build one's character. Thus by wearing jade, one is more virtuous by living these values. There is also a popular belief that jade protects the wearer from disasters and guides his/her fortune. For example, jade would break in the eve of a bad event as a warning to the wearer. However, a jade ornament will appear more brilliant and transparent if good fortune lies ahead.

Origins It has been suggested that the production of Burmese jadeite might stretch as far back as the Pyu city-states period in Myanmar (roughly third to eighth centuries CE) on relatively small scales. The first indications of long-distance trade of the gem begin during the reign of Burma's King Anawratha (1044) to the kingdom of Nancho (present-day Yunnan province) and Beijing in China.The king, being a religious man and believing that the Chinese emperor possessed the relics of Buddha, wished to obtain some relics from the Chinese emperor in exchange for Burmese imperial jade. This pattern of trading jade for other artifacts has existed since then. During the Ming dynasty (1368-1644), jade was traded to China through Yunnan via caravan trade, but no notable pieces from this era are known to exist, as the Ming dynasty was more interested in ceramics. Some of the first jadeite artifacts begin to appear in tombs around this time in China. During subsequent dynasties, particularly during the reign of the Qianlong Emperor (1735–96), there was an explosion of interest in jade from Burma. The Qianlong Emperor went to extraordinary lengths to obtain green jade, and when the Burmese king refused to provide him with tribute, the emperor went to war against Burma. The war was a disaster for the Chinese emperor. His army suffered multiple failures, leading the Qianlong Emperor to say "my finest soldiers were scalded, divided, driven into gullies like cows in a pond. They perished pile on pile. My generals are a joke." The disgraced general Mingjui committed suicide. After this defeat, the Burmese king agreed to a peace treaty, which was signed in 1770 and allowed the export of jade to China. During the reign of Burma's King Mindon (1857–78), the jade trade flourished and expanded. King Mindon allowed the Chinese lapidaries to locate in Mandalay, where they could buy, process, and trade in jade between Burma and China and within Burma. Those lapidaries were expanded and continue to exist to this day.

Based on artifacts recovered in China, the volume of green jade traded through Yunnan increased through the end of the Ming dynasty and the during the beginning of the Qing dynasty. W. Warry, a member of the Chinese Consular Service on an expedition to Burma in 1888 writes the following about the origin of Chinese demand for jade based on local lore.

Jade has been associated with China going as far back as the Liangzhu culture (3400-2250 BC) but this jade was primarily nephrite, a milky white stone more common than the green Burmese jadeite. Often the stone was used in the presence of copper in order to give the illusion of a deeper green color without access to jadeite. As stated in the previous paragraph, most notably during the Qing dynasty, during the Qianlong Emperor's lifetime, he acquired much jade from Burma. He and his court had a particular taste for the Burmese jadeite, or feicui as it was referred to. Empress Dowager Cixi (1835-1908 CE) was particularly noted for her interest in the stone, often using her political position to acquire the stone and using it in her public clothing. Trade continued under her reign.

Before 1949 During the mid-18th century there was an expansion of jade mining and its subsequent export to China as a result of increased Chinese influence over the region, the discovery of new jade quarries, and growing demand for the gem among wealthy Chinese. With the support of the Burmese government, regular trade routes between the jade tract and China traveling north into Yunnan were established as early as 1798. Due to Kachin hostility this route was later replaced by overland trade along the Irrawaddy river as part of established cotton trading routes under the official sanction of the Burmese Crown, establishing Mogaung as the center for trade and taxation of Burmese jade production. The Kachins were granted ownership over the jade they mined in return for paying fees on the transport of their goods beyond Mogaung.

In 1861, as a result of loosening restrictions on coastal trade to China, Cantonese merchants mounted an expedition to Mandalay and brought back jade for trade, beginning the new practice of jade being imported to China via maritime routes. From this point onward the majority of the high-quality stone produced in Burma made its way into China through cities like Guangzhou, Hong Kong and Shanghai, whereas much of the medium-quality stone was still transported overland. During this period there was increased friction between Yunnanese gemstone miners and the Burmese crown over taxation and ownership of the gems leading to several periods of passive resistance carried out by the jade miners including the practice of production limiting.

In 1885, after the Third Anglo-Burmese War, the British seized control of the mines and, after a two-year period of conflict with the Kachin duwa, gained complete control over the jade mines. Having little experience in jade, the British set up regulations that controlled the mines. H. H. Keely became the administrator of the mines. Under British colonial rule the jade trade continued mostly unhindered, except by wars in China and Burma, up until the end of the Chinese Civil War. In 1942, Burma came under the control of the Japanese Imperial Army. They stripped the mines of all equipment and carried away all machinery and power equipment, to be used in their war effort. All jade mining activity ceased. In 1945, the British regained Burma but little progress was made in rehabilitating the mines, due to unsettled political conditions. Further conflict ensured after Mao Tse Tung launched his war against the Nationalist Chinese government.

After 1949 After Burmese independence in 1948, some semblance of mining and trade returned under the civil government.

The end of the Chinese Civil War closed Yunnan's border and brought the jade trade with China to a halt. Consequently, the jade produced in the Kachin state was now transported by rail to Rangoon where it was then exported by sea to Hong Kong. This trade continued until the 1962 military coup in Burma, which nationalized the economy. In March 1969, the Burmese junta declared all gemological resources to be the property of the Myanmar state; private transactions involving such resources were declared illegal, virtually halting the trade. Smuggling exploded, and the Kachin ethnic minority operated surreptitiously, making the area unstable.

Jade traders fleeing across the border to Thailand as a result of nationalization began to create networks to facilitate the trade of Burmese jade through Thailand, originally through the border crossing at the town Mae Sai, Mae Sot, and Mae Hong Song. The transport of jade to the border often required the services of caravan companies that carried the jade by pack animal from the Mandalay onward to border towns where jade could be smuggled into Thailand. In 1966 the first jade trading company, The Qiujia Company, was founded in Thailand, which used connections to both border militias and the Thai government to facilitate transport of Burmese jade from the border to buyers in Hong Kong. Trading companies often served the role of providing capital services and risk insurance for jade sellers in the event of lost or stolen products. Often these companies would have preferential relationships with clients that had a reputation for skillfully identifying valuable jade stones for sale. Smuggling also took placer at the Ruili border crossing to China and Lwejel.