Washington (AFP) – US Treasury Secretary Scott Bessent slammed Beijing’s rare earth export curbs Wednesday as “China versus the world,” vowing that Washington and its allies would “neither be commanded nor controlled.”
“This should be a clear sign to our allies that we must work together, and work together we will,” Bessent told reporters at a press conference. “We are not going to let a group of bureaucrats in Beijing try to manage the global supply chains.” His comments came as global economic leaders gather in Washington this week for the International Monetary Fund and World Bank’s fall meetings.
“We should work together to de-risk and diversify our supply chains away from China as quickly as possible,” Bessent urged. He later told a press roundtable that Washington was “already in talks” with partners on potential ways to push back. Bessent spoke days after Beijing announced fresh controls on the export of rare earth technologies and items. China is the world’s leading producer of the minerals used to make magnets crucial to the auto, electronic, and defense industries.
Bessent told a forum hosted by CNBC earlier Wednesday that he planned to speak with European allies, Australia, Canada, India, and other Asian democracies, signaling a push for broader support beyond the Group of Seven advanced economies. “We’re going to have a fulsome group response to this,” he added. But he maintained that Washington would rather not take substantial actions to retaliate against China, expecting that more talks with Beijing will be forthcoming this week.
– Longer tariff truce? – A trade war between Washington and Beijing has reignited in US President Donald Trump’s second term, with tit-for-tat duties reaching triple-digit levels at one point, snarling supply chains. Both sides have de-escalated tariff levels, but their truce remains shaky and is set to expire in early November.
With the latest controls surrounding rare earths, Trump has threatened an additional 100-percent tariff on goods from China starting November 1. US Trade Representative Jamieson Greer warned at Wednesday’s press briefing that US plans for a tariff hike or other export controls are in the works. But he expressed hope that China would back off its rare earth curbs.
Bessent said an extension of the pause in steep tariffs was possible — in return for a delay in rare earth controls. “Is it possible that we could go to a longer roll in return for a delay? Perhaps,” Bessent said. “But all that is going to be negotiated in the coming weeks, before the leaders meet in (South) Korea.” The leaders of the world’s two biggest economies are expected to hold talks at the Asia-Pacific Economic Cooperation (APEC) summit starting later this month.
Bessent earlier told CNBC that Trump still planned to meet Chinese President Xi Jinping at the summit. Greer said Wednesday that “this is not just about the United States.” “China’s announcement is nothing more than a global supply chain power grab,” he said. “This move is not proportional retaliation. It is an exercise in economic coercion on every country in the world.”
© 2024 AFP
