US rare earth deal strains China ties

Thailand's surprise signing of a memorandum of understanding (MoU) with the US on rare earth minerals cooperation in October threatens to affect its efforts to maintain a well-calibrated balance between China and the US.

- LAMONPHET APISITNIRAN

Washington and Beijing are at odds over restrictions on rare earth exports, triggering trade tensions as the US defence sector depends on rare earth magnets for systems such as F-35 jets, according to media reports.

The deal with Thailand could pave the way for more critical mineral exports to serve US defence, automotive and high-tech industries.

China would likely pay close attention to this development as Washington is seeking alternatives to reduce its reliance on China, said Somjai Phagaphasvivat, a political economy analyst.