Malaysia will approve a Chinese state-linked rare earth refining joint venture within the next 12 months.

Kuala Lumpur's new rules require investors to transfer proprietary processing technology and build local capacity rather than just export raw ore, and China remains one of the only players willing to swap such technology, normally banned from export, for reserve access. Talks between sovereign fund Khazanah Nasional and a Chinese state-owned firm for a domestic refinery were already under way as of late 2025, making this mandate less an anti-China filter than a lever Beijing is uniquely positioned to pull.