Archive · 19 Jul 2026
China Expands Rare Earths Influence to Malaysia, Indonesia
China is trying to control the global market for rare earths, which are important minerals used in many technologies.
They are doing this by working with Malaysia and Indonesia.
Malaysia has stopped exporting unprocessed rare earths and is inviting companies to invest in processing them there.
China wants to be involved in these projects to ensure they remain important in the industry.
Indonesia has also found areas with rare earths and is inviting foreign investment to develop them.
China already has a strong presence in Indonesia's other industries and could expand into rare earths there as well.
This way, China can keep its leading position in the rare earths market.
China aims to control the global rare earths industry by expanding its influence to Malaysia and Indonesia.
Malaysia has banned the export of unprocessed rare earths and is inviting investment to process them domestically.
Chinese and non-Chinese companies are investing in Malaysia's rare earth processing, including Carester, Malaco, Lynas, and JS Link.
China wants to be a key player in Malaysia's rare earth industry to prevent it from becoming a competitor.
Indonesia has identified eight blocks with rare earths and is inviting foreign investment to develop them, with China, Japan, and South Korea as potential partners.
- Who
- China, Malaysia, Indonesia
- What
- China's strategy to control global rare earths industry by expanding to Malaysia and Indonesia
- When
- Ongoing, with recent developments in 2026
- Where
- Malaysia and Indonesia
- Why
- To maintain dominance in rare earth production and technology, and to prevent competitors from gaining an advantage
- Countries Involved
- Malaysia, Indonesia, China
- Key Minerals
- Rare Earths
- Malaysia's Policy
- Prohibits unprocessed rare earth exports, invites investment
- Indonesia's Policy
- Identified eight rare earth blocks, invites foreign investment
- China's Strategy
- Insert Chinese technology and companies into global rare earth industry
- Malaysian Projects
- Carester, Malaco, Lynas, JS Link
- Indonesian Locations
- Kalimantan, Sulawesi, Bangka Belitung