Myanmar seeks US investment to break China's rare earths dominance

BANGKOK - Myanmar's military-led administration has intensified calls for greater United States involvement in developing the country's rare earths industry, viewing expanded American investment as a counterweight to Beijing's dominant position in the strategic sector.

The push reflects Rangoon's broader effort to diversify foreign engagement and reduce economic dependence on China, even as the country faces international isolation over its 2021 military coup and subsequent civil conflict. Rare earths, essential for manufacturing electronics, renewable energy systems and defence equipment, represent a potentially lucrative resource for Myanmar's war-ravaged economy.

China currently commands significant influence over Myanmar's rare earths extraction and processing, leveraging both geographic proximity and established commercial relationships. Myanmar's military authorities believe American participation could create alternative markets and technological partnerships while generating revenue for the state.

The overture comes as Myanmar grapples with ongoing internal instability and limited diplomatic options. Whether Washington will commit substantial investment remains uncertain, given US concerns about the junta's governance record and the complex geopolitical dynamics across Southeast Asia.