Bangkok: Mr. Krit Ungwithoonsathit, President of the Thai-Myanmar Business Council, revealed on the “Good Morning ASEAN” program on MCOT NEWS FM 100.5 that Thailand has been drawn into the vortex of the US-China trade war. This major power struggle involves the joint diversification of the supply chain for rare earth minerals, which are fundamental for industries such as energy for electric vehicles, batteries, and even medical products like MRI machines.

According to Thai News Agency, Mr. Krit pointed out that Myanmar, a major mineral producer for China and heavily reliant on China, faces concerns that should China signal a decision, Myanmar must respond unconditionally. This could lead to sensitivities along the Thai-Myanmar border and the potential for illegal imports, as Thailand has signed a memorandum of understanding (MOU) with the United States regarding rare earth minerals.

While Thailand has benefited from the rare earth MOU, both in terms of technology transfer from the United States and opportunities to develop the rare earth industry, particularly through the Thailand EV Valley policy, the Thai government has insisted that the MOU is non-binding. Additionally, the United States holds no exclusive rights. Thailand must remain cautious and maintain a geopolitical balance, as it is believed that Chinese investors may attempt to reinforce China’s continued status as a key trading partner.