U.S. Treasury Secretary Scott Bessent is accusing China of weakening the global economy by placing export controls on minerals and metals that are needed to build advanced technologies.
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In an interview with The Financial Times, Bessent said China’s curbs on the export of rare-earth metals and minerals are an attempt by China “to pull everyone else down with them.” He added that “if they (China) want to slow down the global economy, they will be hurt the most.”
The comments from the U.S. Treasury Secretary come as trade tensions ratchet up between the world’s two biggest economies. Officials in Beijing have said that they won’t allow the export of rare earths for military use. The U.S. uses rare earth magnets for many of its most advanced weapons systems, including the F-35 stealth fighter and Tomahawk missiles.
U.S. Escalation
U.S. President Donald Trump has responded by announcing 100% tariffs on Chinese imports beginning on Nov. 1. Stock markets around the world have been volatile since the trade dispute flared up on Oct. 10. The prospect of an all-out trade war between the superpowers has investors seeking safe-haven assets such as gold and bonds.
“They are in the middle of a recession/depression, and they are trying to export their way out of it. The problem is they’re exacerbating their standing in the world,” said U.S. Treasury Secretary Bessent in the interview, referring to China’s economic problems since the end of the Covid-19 pandemic.
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