Scott Bessent, the U.S. treasury secretary, argued that China would be the biggest loser from the tougher rare earth export controls it has flagged.
On the 13th (local time), Minister Bessent said in an interview with the Financial Times (FT) of the United Kingdom regarding rare earth export controls, "This is a signal of how weak China's economy is, and they are trying to drag everyone else down with them."
He added, "Hurting your customers might be part of a Leninist business model, but China is the world's largest supplier (of rare earths)," and "if they try to slow the global economy, they will be the ones hurt the most."
Minister Bessent also said, "They are in the middle of a recession/depression and are trying to get out through exports," and "the problem is that in the process they are weakening their standing in the international community."
China, in response to the United States' high tariff policy, announced a "rare earth export control" measure on the 9th. Rare earths are used widely in electric vehicle motors, secondary batteries, semiconductors, wind power turbines, and missile systems, and China accounts for 91% of the world's refined rare earth production.