Malaysian Minister of Natural Resources and Environment Sustainability Johari Ambud Ghani revealed that Chinese President Xi Jinping offered the country technical assistance to develop its rare-earth processing capabilities. Digitimes reported that the leader of the Communist Party of China proposed this deal during his visit in 2024, but it came with one key condition: the cooperation will be limited to state-owned companies only, citing technology protection concerns.
Rare-earth elements are crucial ingredients for many modern technologies, especially in semiconductor and chip manufacturing. China is one of the biggest exporters of these materials, and its control over the market has allowed it to use it as a bargaining chip in its negotiations with the U.S. So, Beijing’s offer to essentially develop a competitor for its own industry raises strategic questions, especially given Kuala Lumpur’s close ties with Washington.
