US Treasury chief: Beijing’s rare earths move is ‘China vs world’

US Treasury Secretary Scott Bessent has accused China of “economic coercion” after Beijing tightened rare earth export controls, warning that Washington and its allies will “neither be commanded nor controlled.”

Speaking at a press conference during the IMF and World Bank meetings in Washington, Bessent said China’s new curbs on rare earth technologies amount to “China versus the world,” urging G7 and allied nations to urgently “de-risk and diversify supply chains away from China.”

“This should be a clear sign to our allies that we must work together — and work together we will,” Bessent said.

China dominates the global supply of rare earth minerals used in electric vehicles, electronics, and defense equipment. The move has reignited trade tensions that had cooled briefly under the tariff truce negotiated earlier this year.

US Weighs Extended Truce — But Warns of Retaliation

Bessent, joined by US Trade Representative Jamieson Greer, said Washington “would rather not retaliate” but confirmed that new tariffs and export restrictions are being prepared if Beijing doesn’t reverse course.

“China’s announcement is nothing more than a global supply chain power grab,” Greer said. “This is not proportional retaliation — it’s economic coercion on every country in the world.”

Bessent hinted that a longer tariff pause could be possible in exchange for a delay in China’s rare earth restrictions, saying the matter will be negotiated before the expected Trump–Xi meeting at the APEC summit in South Korea later this month.

“Is it possible we could go to a longer roll in return for a delay? Perhaps,” Bessent told reporters.

Trade War Tensions Remain High

The remarks come as President Donald Trump has threatened to impose a 100% tariff on Chinese imports and restrict exports of critical US software beginning November 1 — measures that could escalate the renewed trade war between the world’s two largest economies.

Despite the tough rhetoric, Bessent told CNBC earlier that he remains “optimistic” about the prospects for continued talks with Beijing, even as global markets brace for another round of tariff turbulence.

Bessent’s comments mark one of Washington’s strongest responses yet to Beijing’s resource leverage play. As both sides edge toward the November 1 deadline, investors are watching whether diplomacy at the APEC summit can prevent another full-scale trade rupture between the US and China.