US Treasury Secretary Scott Bessent has warned that all options are on the table in response to China’s recent tightening of export controls on rare earths. Bessent maintains that President Donald Trump still intends to meet with Chinese President Xi Jinping, despite escalating tensions. He noted that “substantial communication” occurred over the weekend, following what the US perceived as a lack of responsiveness from Beijing regarding the rare earths decision.
China’s decision involves imposing global export controls on products containing even trace amounts of certain rare earths. This prompted President Trump to threaten the cancellation of his planned meeting with Xi at the Asia-Pacific Economic Cooperation summit in South Korea later this month. Trump also announced intentions to impose an additional 100 per cent tariff on Chinese goods starting November 1.
Bessent characterised China’s actions as a threat to global supply chains and the industrial base of the free world. He asserted that the US would not tolerate these export restrictions and monitoring, expressing optimism that China is open to discussion. Bessent stated, “A group of bureaucrats in China cannot tell us and our allies how to run our supply system.”
The US plans to meet with its allies this week, anticipating significant support from European nations, India, and democracies across Asia. Bessent expects “substantial global support from the Europeans, from the Indians, from the democracies in Asia”. The Treasury Department is responsible for promoting economic prosperity and ensuring the financial security of the United States. It performs a wide range of functions such as advising the President on economic and financial issues, encouraging sustainable economic growth, and fostering improved governance in financial institutions.
