Bessent indicated that the US would not permit China to exploit its rare earth dominance and is coordinating with allies to respond collectively.
“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,” Bessent told Fox Business on Monday.
He added that the US would not allow Beijing to weaponise 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.”
“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,” Bessent remarked.
The US has threatened to place an additional 100% tax on Chinese imports starting on November 1 or sooner. If this comes into effect, this would raise tariff rates close to levels that in April fanned fears of a global recession.
