Washington Faces Uphill Battle to Challenge China‘s Dominance in rare earths Supply Chains
On the same day, the Trump administration sealed agreements with malaysia and Thailand focused on bolstering America’s access to critical minerals and rare earths - resources vital for technologies ranging from electric vehicles to defense systems. However, analysts suggest the U.S.may be at a disadvantage in securing these supplies compared to China, which has cultivated long-standing economic ties with resource-rich nations.
The back-to-back deals reflect a growing competition between the U.S. and China for control over rare earths and critical minerals. while the U.S. aims to diversify its supply chains, experts believe Beijing is better positioned to succeed due to its established relationships and investment strategies in Southeast Asia, Africa, and beyond.
According to analysts, countries in the Global South frequently enough view China as a “partner that actually builds,” with investments typically offered without preconditions. In contrast,U.S. investments are often accompanied by more stipulations.This perception, coupled with a view of the Trump administration as “aggressive,” could hinder the U.S. effort to break China’s existing dominance in the rare earths market.
The White House stated that agreements with both Malaysia and Thailand would “strengthen cooperation on critical minerals supply chains development and expansion,” and promote trade in areas including resource exploration, extraction, processing, and refining. The U.S. and Malaysia also agreed to step up cooperation on building and expanding critical minerals supply chains and to strengthen the security of supplies in both countries.
