Rare earth deal risks China ties

The controversial agreement with the US on the joint development of a rare earth minerals supply chain may put Thailand at risk of straining its diplomatic ties with China, warns the Federation of Thai Industries (FTI).

- LAMONPHET APISITNIRAN

Though the agreement is seen by Finance Minister Ekniti Nitithanprapas as a way of enhancing Thailand's opportunity to negotiate on reciprocal tariffs with the US, it raises concerns over the impact on geopolitics as well as the threat to the environment, say some critics.

"Like many Thais, we never knew this deal was considered a priority," said Kriengkrai Thiennukul, chairman of the FTI.

On Oct 26, Thailand and the US signed a memorandum of understanding (MoU) on cooperation to diversify the global critical minerals supply chain and promote investments, during the 47th Asean Summit in Kuala Lumpur.