AMERICA’S Treasury secretary has cautioned China that sweeping new restrictions on rare earth and critical mineral exports risk forcing Western nations to sever economic ties with China.
The Financial Times quoted Scott Bessent as saying that Beijing’s latest measures amounted to challenging the entire international community. If it proved an unreliable trading partner, the world would be compelled to decouple from Chinese supply chains, he said. Whilst countries preferred managed risk reduction, such actions signalled a dangerous move towards full separation that China itself likely wished to avoid, he added.
Beijing recently announced licensing requirements for non-Chinese firms exporting products containing even trace amounts of designated minerals, said the newspaper. The regime, due to take effect in December, has drawn sharp criticism from Washington and allies who warn of severe disruption to global supply networks given China’s market dominance.
President Donald Trump has threatened to impose an additional 100% tariff on Chinese imports by November 1 unless the policy is withdrawn.
US trade representative Jamieson Greer characterised the controls as unprecedented economic coercion affecting every nation. Unlike previous retaliatory measures targeting specific countries, this constituted disproportionate action with worldwide implications, he said.
The restrictions would impact artificial intelligence systems, advanced technology and everyday consumer goods including vehicles, smartphones and household appliances, he added.
The US has demanded China abandon the programme. Sara Schuman, formerly a senior US trade negotiator, said China’s response over the coming fortnight would carry significant strategic consequences for years ahead.
American officials also criticised Li Chenggang, a senior Chinese negotiator, whom Bessent accused of making an uninvited August visit to Washington where he behaved disrespectfully and threatened global chaos over new port charges for Chinese vessels.
Bessent said he anticipated Trump would meet President Xi Jinping at the Asia-Pacific Economic Cooperation forum in South Korea on 29 October. Whilst expressing optimism about de-escalation, he and Greer warned of robust countermeasures should China proceed.
The current 90-day tariff suspension expires mid-November.
