Washington: In a move that has stunned international observers and human rights advocates, the United States has quietly lifted sanctions on several high-profile business allies of Myanmar’s military junta, just days after the country's top general issued a public letter lauding former U.S. President Donald Trump and requesting a thaw in relations.
The decision, announced on July 24 by the U.S. Treasury Department, removes four Myanmar-linked individuals and companies from its blacklist: KT Services & Logistics and its founder Jonathan Myo Kyaw Thaung, MCM Group and its owner Aung Hlaing Oo, Suntac Technologies with Sit Taing Aung, and businesswoman Tin Latt Min. These entities were previously sanctioned for their financial and material support to Myanmar’s military regime, which seized power in a bloody coup in February 2021.
The unexpected policy shift follows a letter sent by junta leader Senior General Min Aung Hlaing to Donald Trump, in which he praised the former U.S. president's “strong leadership” and drew parallels between the military coup in Myanmar and Trump’s own disputed claims about the 2020 U.S. election. The general also used the letter to request a reduction in U.S. tariffs and sanctions, citing a desire to rebuild economic ties with Washington.
While the Biden administration has not released a formal statement explaining the rationale behind the removals, many are interpreting the move as a significant shift in diplomatic posture one that may reflect deeper geopolitical calculations in Southeast Asia.
The decision has drawn sharp criticism from human rights organizations and Myanmar’s exiled democratic opposition, who say it undermines international accountability for a regime accused of mass atrocities. According to Human Rights Watch, the move “sends a dangerous signal that military-backed elites can evade consequences simply by offering praise to powerful political figures in the West.”
The junta has been widely condemned for its brutal suppression of dissent, alleged war crimes against ethnic minorities, and the killing of thousands of pro-democracy protesters. Over 1.3 million people have been displaced, and many regions remain locked in civil conflict.
Analysts believe Washington’s decision may be less about praise for Trump and more about minerals, markets, and maneuvering against China. Myanmar holds vast reserves of rare earth elements, which are critical for high-tech devices, renewable energy infrastructure, and defense applications.
China currently dominates the global rare earth market, and Myanmar is one of the few alternative sources. Some U.S. policy experts suggest that lifting sanctions on junta-linked businesses could be part of a realignment aimed at securing strategic access to these resources, even if it means compromising on human rights pressure.
Myanmar’s state media has hailed the decision as a “positive step towards normalization” and a possible indication that U.S. policymakers may be open to re-engagement despite ongoing violence and international isolation.
Officials within the junta reportedly see the move as vindication of their diplomatic efforts, and a possible signal that Washington is more willing to work with strongman regimes in light of global power realignments.
However, democracy advocates inside and outside Myanmar argue that the U.S. has weakened its moral authority and given the junta a propaganda victory. With no clear conditions tied to the removal of sanctions such as the release of political prisoners, cessation of violence, or movement toward democratic reforms many fear the regime will feel emboldened rather than restrained.
As Myanmar’s internal conflict grinds on, the removal of sanctions will likely remain a deeply divisive decision, raising fresh questions about how much global democracies are willing to compromise in the face of geopolitical interests and autocratic diplomacy.
In Summary: The U.S. has lifted sanctions on key Myanmar junta allies in a surprising move that follows overtures from the country’s military leadership. While the official reasoning remains unclear, observers point to a mix of economic strategy, rare earth diplomacy, and shifting global alliances all set against the backdrop of a deeply deteriorating human rights crisis in Myanmar.