As the United States hit back at China's export controls on rare earths and minerals with an additional 100% tariff, sparking expectations that the U.S.-China trade war will reignite, U.S. Treasury Secretary Scott Bessent on the 15th (local time) urged allies to stand together, saying China is trying to control the global economy through rare earth export controls.
Minister Bessent and U.S. Trade Representative (USTR) Jamieson Greer held an unusual joint news conference at the Treasury Department in Washington, D.C., that day and defined China's export controls as "economic coercion against all countries in the world." Greer said, "It effectively lets China control the entire global economy and technology supply chains," adding, "For example, if a smartphone is made in Korea and sold in Australia, that company would first have to get China's approval. That is because the phone could include semiconductors containing rare earths sourced from China, and we, and our allies, are not going to follow that kind of system."
Greer also argued that China's latest move is not intended to gain leverage in negotiations with the United States. He said it is "part of China's broader plan to dominate global supply chains," adding, "The United States will not stand by. We are in close contact with allies that are similarly affected (by China's export controls) and have expressed views similar to ours."
Minister Bessent also said, "China has imposed unacceptable export controls on the world," adding, "We and our allies will neither take orders nor be controlled." He continued, "This should be a clear signal to our allies that we need to work together," and added, "We plan to discuss this issue with allies during the International Monetary Fund (IMF) and World Bank annual meetings." The United States is expected to press its allies and partners even more to counter China.
However, Minister Bessent drew a line, saying this does not mean a decoupling from China. He said, "The world does not want decoupling (from China). We want to de-risk," adding, "We must work together to diversify supply chains away from China as quickly as possible and reduce risks."
Bessent also left open the possibility that President Donald Trump and Chinese President Xi Jinping could hold a U.S.-China summit on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju at the end of this month. Earlier the same day, Bessent said in an interview with CNBC that he plans to meet Chinese Vice Premier He Lifeng of the China State Council before attending the APEC summit.