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So for example as Spain you can not just put Ming as your rival when you have not even discovered them. And you can not simply rival countries that are much more powerful or much less powerful.
Sometimes you are only left with your current allies. AI tends to pick a rival anyway and break alliance. You do not have to, you can have less rivals and eat monarch points penalty. But eventually, it depends on actual situation, maybe you want to get rid of your ally instead.
If you have high trust with an ally (I think at least 80 or 90) he will not cancel the alliance just because you are the only eligible rival.
However, he may still break the alliance for other reasons (low opinion/same provinces of interest/...) and rival you after breaking the alliance.
Edit: Of course this applies only if you have the DLC which adds Trust, I think it's Cossacks.