Rare earth element (REE) has emerged as a focal point of a tug of war between China and the US in the battle for technological supremacy. REEs are essential for everything from green energy to missile guidance systems.
The odds are stacked heavily in China's favour, with the Asian giant producing over 85% of the world's current supply.
For the US, this dominance is both a strategic vulnerability and a geopolitical challenge. The pressure to diversify sources away from Chinese control has led Washington to recalibrate its foreign policy in Southeast Asia, with Myanmar and the Philippines now the focus of this unfolding competition.
Rare earth elements (REE) are a group of 17 metallic elements, including the 15 lanthanides plus scandium and yttrium, that share similar chemical properties and are typically silvery-white, soft, and heavy.
Despite their name, they are relatively abundant in the Earth's crust, but occur in low concentrations, making their extraction and purification costly and challenging. REEs are essential in modern technology, with applications ranging from electronics and powerful magnets to lasers, glass, and advanced industrial processes.
Myanmar's turmoil and China's enduring grip on REE supply
Myanmar, rich in rare earth deposits, particularly in the Kachin state near the Chinese border, initially held promise. However, the US's hopes have quickly dimmed since the 2021 military coup led by General Min Aung Hlaing plunged the country into chaos.
In response, the Biden administration passed the BURMA Act in 2022 to increase pressure on Myanmar's junta.
More recently, on 24 July, the Trump administration lifted sanctions designations on several allies of Myanmar's ruling generals. Critics argue this decision came at a time when the junta was on the edge of losing control over the country.
China, on the other hand, has remained consistently invested.
Despite the turmoil, smuggling routes, informal mining operations, and refining capacity across the border in China have ensured that Beijing continues to benefit from Myanmar's rare earth supply. Recently, China has been strategically involved with Myanmar's rebel groups, such as the KIA.
According to the USIP Senior Study Group Report (2018) on China's Influence in Myanmar's Internal Conflicts, this has helped secure the porous border and gain access to the lucrative mining projects of REEs.
The Philippines as Washington's strategic alternative
This has made the Philippines a more stable and strategic alternative for the US. A 2022 study published in Chemical Geology (Volume 552, Article 119771) confirmed that the Philippine archipelago sits atop significant rare earth deposits. The US has responded with increased diplomatic and military engagement, eyeing both mineral access and maritime leverage in the South China Sea.
The strategic link between rare earths and South China Sea disputes has become increasingly visible.
China claimed on August 13, 2025, that it had "warned and driven away" the USS Higgins, a US destroyer, near Scarborough Shoal. Beijing accused the US of violating its sovereignty, while Washington asserted it was conducting a lawful "freedom of navigation operation" to challenge China's sweeping claims.
If the Philippines can maintain control over its exclusive economic zone (EEZ) in the South China Sea with US backing, it would strengthen Washington's ability to secure shipping lanes, protect mineral rights, and counter Chinese expansion. Conversely, a Philippine tilt toward Beijing would help China consolidate both maritime dominance and resource control.
REE, the South China Sea, and the battle for regional influence
Philippine President Marcos Jr became the first ASEAN state head to visit the US during Trump's second tenure on 20 July 2025.
On his first official day, Marcos Jr highlighted the escalating disputes in the South China Sea and the West Philippine Sea as key foreign policy concerns. He underscored the importance of the longstanding alliance between the Philippines and the US, noting that the Mutual Defence Treaty remains a cornerstone of regional stability and a symbol of enduring bilateral ties.
Tariff talks added an unusual twist to these Southeast Asian relations.
While Myanmar's junta leader praised Trump after receiving a letter about trade tariffs, which many saw as a quiet US recognition of the regime, the Philippines secured a small tariff cut from 20% to 19%.
President Marcos Jr called the meeting a success, though critics have raised questions about whether a nondisclosure agreement was involved to gain both US trust and Philippine concessions.
Shortly after the midterm elections and ahead of President Marcos Jr.'s fourth State of the Nation address, he signalled a renewed alignment with Washington.
However, this shift has not gone unchallenged at home. His vice president, Sara Duterte, daughter of the former president, represents a faction that remains deeply pragmatic and open to Chinese influence.
This internal tension between a pro-China and a pro-US power structure reflects the broader dilemma in Southeast Asia, where nations seek economic engagement with China while depending on the US for security.
Meanwhile, the US's strategic cooperation with the Philippines hinges not only on mineral extraction but also on ensuring stable governance and regional autonomy amid both Chinese pressure and internal disarray.
Ultimately, the competition over rare earths is not merely a race for resources. It is a contest over who gets to shape the rules of the emerging global order.
In Southeast Asia, the stakes are not only geological but also deeply political and strategic. As the US pivots to the region with a clear eye on Chinese influence, its success will depend on more than just mineral deals.
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