The United States, Malaysia, and Thailand sign a rare earths memorandum to seek to reduce reliance on China.

Foreign media: The United States is trying to reduce its reliance on China's rare earth supply by signing memoranda of understanding with Malaysia and Thailand on rare earths.

China is the main supplier of rare earths globally, accounting for about 70% of the world's rare earth metal mining and 90% of the processing. This agreement aims to increase the export of critical minerals for American automobile, defense, and high-tech hardware manufacturers.

However, these agreements need industry support and time to develop processing capabilities in order for raw materials to enter the U.S. market on a larger scale. Experts believe that these agreements may ultimately help the United States reduce its reliance on Chinese rare earths in long-term trade disputes, serving as an effective hedging strategy.

Original article: www.toutiao.com/article/1847151945097292/

Statement: This article represents the views of the author himself.