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Pakistan
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Ayesha Shaikh
Opinion
Ayesha Shaikh

How Pakistan can balance US and Chinese investment

The recent agreement between Pakistan and the US on rare earths need not be seen as antithetical to the China-Pakistan Economic Corridor

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Pakistani Prime Minister Muhammad Shehbaz Sharif (left) and General Syed Asim Munir (second from right) wait for their meeting with US President Donald Trump at the White House on September 25. Photo: AP
Ayesha Shaikh
Ayesha Shaikh is a researcher in international relations.
The United States is pouring billions into rare earth supply chains to counter Chinese supremacy amid an ongoing rivalry between the two countries. Against this backdrop, Pakistan has signed a memorandum of understanding with the US to promote the refinement of critical minerals on Pakistani soil.
It remains to be seen if cooperation with the US will bolster Pakistan’s strategic autonomy or ensnare Islamabad in another geopolitical quagmire. However, the memorandum of understanding is certainly not antithetical to the China-Pakistan Economic Corridor (CPEC). In fact, Pakistan can turn it into a positive-sum bargain. Cooperation with the US and China can benefit all stakeholders.

Rare earth minerals, unlike what the name suggests, are not rare. A thin deposit of these resources is found all over the Earth; they range from scandium and yttrium to 15 silvery-white metals called lanthanides. These elements are crucial for producing electric vehicles, semiconductors and military weapons.

Pakistan is rich in mineral resource potential with an outcrop area of around 600,000 sq km. The country is also situated at the crossroads of South, East and West Asia, making it a strategic partner for trade and connectivity. Hence, despite security concerns and economic issues, Pakistan has attracted investment from both China and the US.

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