Thailand’s Supply Chains and the Threat of Chinese Rare Earth Restrictions

Thailand, a key player in Southeast Asia’s manufacturing and export economy, faces potential risks to its supply chains due to China’s recent restrictions on rare earth element (REE) exports. As a hub for industries like automotive, electronics, and renewable energy, Thailand relies heavily on global supply chains, including critical minerals sourced from China, which dominates 60% of global REE mining and 85% of processing.

China has started permitting certain rare earth shipments under its updated export control regulations, but the sluggish approval process poses risks of disrupting global supply chains, industry experts warn.