The took a sharper turn this week, with US Treasury Secretary Scott Bessent accusing Chinese President Xi Jinping’s regime of making "provocative," economic moves after Beijing tightened export controls on .
Speaking to on Monday, Bessent said the move was a direct challenge to the global economy, "This is China versus the rest of the world. They announced these export controls that are going to go into effect next month, and we have aggressively pushed back against them. We're not sure where this came from, why the Chinese have decided to do it now."
He added that the US would not allow Beijing to weaponize its dominance in rare earths, that includes vital materials for industries like defense, electric vehicles, and electronics, saying, "They have pointed a bazooka at the supply chains and the industrial base of the entire free world. And, you know, we're not going to have it. China is a command and control economy. They are neither going to command [nor] control us."
Bessent said Washington had already begun coordinating with allies, including India, Europe, and other Asian democracies, to respond collectively to China’s move.
"We are going to assert our sovereignty in various ways. We have already been in touch with the allies. We will be meeting with them this week and, you know, I expect that we will get substantial global support from the Europeans, from the Indians, from the democracies in Asia," he added.
China’s rare earth dominance and export curbsBeijing’s new rules, announced on October 9, require companies — both Chinese and foreign — to obtain government approval to export any product containing more than 0.1% rare earth elements by value. The curbs also expand the list of restricted minerals and ban exports for foreign military use.
China controls nearly 70% of the world’s rare earth mining and 90% of processing, giving it outsized leverage in sectors that depend on these materials.
Among the most crucial elements is dysprosium (atomic number 66), a key ingredient in electric vehicle motors, wind turbines, semiconductors, and defense systems. Bessent compared the importance of these minerals to baking powder in a bakery, "used in small quantities, but absolutely essential."
The export controls, which Beijing said are intended to protect national security amid "frequent military conflict," have rattled supply chains globally and prompted the Trump administration’s retaliatory threat of 100% tariffs on Chinese goods starting November 1.
Trump’s tariff threatPresident Donald Trump escalated tensions on Friday, announcing plans to double tariffs on Chinese imports, raising the total tariff rate to around 130%.
He described China’s actions as "extraordinarily aggressive," saying the US would respond with "strong measures to defend our industries.”
However, Trump later sought to calm markets, posting on Truth Social, "It will all be fine. President Xi just had a bad moment. He doesn’t want depression for his country, and neither do I. The USA wants to help China, not hurt it!!!”
Trump’s fluctuating stance has led some on Wall Street to dub him "TACO"— short for "Trump Always Chickens Out," due to his history of walking back tough tariff threats.
'China is hurting itself'Bessent further criticised Beijing’s strategy, calling it a sign of economic weakness rather than strength.
In an interview with
The Financial Times, he remarked, "This is a sign of how weak their economy is, and they want to pull everybody else down with them. Maybe there is some Leninist business model where hurting your customers is a good idea, but they are the largest supplier to the world. If they want to slow down the global economy, they will be hurt the most."
He accused China of being "in the midst of a recession or depression" and trying to "export their way out of it," warning that such tactics would only "exacerbate their standing in the world."
'US is willing to do whatever it takes'Amid the escalating tensions, Bessent emphasised the importance of building a coordinated global response. He added that the US is "willing to do whatever it takes "to stabilise supply chains and negotiate a deal."
"Everything's on the table. I am optimistic that this can be de-escalated … lines of communication have been opened … But, the US will not be deterred here. And, you know, as I said, this is China versus the world. And the Chinese have a different business model than we do. But there is no business model that shows it is a good idea to harm your customers. China is the largest exporter in the world, and they are dependent on trade. We do not want to decouple. We want to de-risk," Bessent added.
What’s next: Trump-Xi meeting in South KoreaDespite the growing friction, Bessent confirmed that President Trump and Xi Jinping are expected to meet in South Korea later this month, although tensions could affect the schedule.
"He will be meeting with Party Chair Xi in Korea, I believe that meeting will still go ahead," Bessent told Fox Business.
Ahead of that meeting, US and Chinese officials are expected to hold staff-level talks in Washington during the IMF and World Bank meetings, followed by discussions between Bessent and Chinese Vice Premier He Lifeng in Asia.
The coming weeks will test whether both sides can de-escalate the rare earth dispute or whether it becomes another flashpoint in the world’s most consequential trade relationship.