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Monday, Aug 10, 2026
Outside the box.
Bessent Accuses China of Dragging Down Global Economy Amid New Trade Curbs
U.S. Treasury Secretary says Beijing’s export restrictions on rare earths reflect economic weakness and pose global risks
U.S. Treasury Secretary Scott Bessent has accused China of attempting to destabilize the global economy following Beijing’s decision to impose sweeping export controls on rare earths and critical minerals.
Speaking during a press briefing in Washington, Bessent warned that Beijing’s actions signal economic desperation, saying China is trying to “pull everybody else down with them”.
The new restrictions, announced by China’s Commerce Ministry, require foreign buyers to obtain Chinese licenses for certain mineral exports, even in cases where Chinese suppliers are not directly involved.
The move comes weeks before a planned meeting between President Donald Trump and President Xi Jinping.
In response, President Trump said his administration is considering a 100 percent tariff on all Chinese goods starting November 1 if Beijing does not reverse course.
Bessent described China’s export curbs as “an act of economic coercion” that could damage global supply chains dependent on rare earth elements, which are essential for electronics, defense systems, and clean-energy technologies.
He added that the United States would work with allies, including the European Union, Japan, and India, to coordinate a collective response and reduce reliance on Chinese mineral supply.
Despite the renewed trade tension, Bessent noted that technical-level talks between U.S. and Chinese officials had resumed over the weekend.
He confirmed that both sides remain in contact ahead of the International Monetary Fund and World Bank meetings later this month and that a Trump-Xi meeting is still expected in South Korea.
Beijing, however, defended the new export controls, saying they are necessary to safeguard national security and protect domestic industries.
China’s Commerce Ministry accused Washington of weaponizing trade policy and vowed to “respond firmly” to any additional tariffs.
Analysts warn that the standoff could strain already fragile global markets, with investors bracing for a new round of supply-chain disruptions.
Bessent reiterated that the United States does not seek confrontation but will act decisively to protect its economic interests and those of its allies.
“China has chosen a path of confrontation through restriction,” he said.
“We will choose resilience through cooperation”.
Speaking during a press briefing in Washington, Bessent warned that Beijing’s actions signal economic desperation, saying China is trying to “pull everybody else down with them”.
The new restrictions, announced by China’s Commerce Ministry, require foreign buyers to obtain Chinese licenses for certain mineral exports, even in cases where Chinese suppliers are not directly involved.
The move comes weeks before a planned meeting between President Donald Trump and President Xi Jinping.
In response, President Trump said his administration is considering a 100 percent tariff on all Chinese goods starting November 1 if Beijing does not reverse course.
Bessent described China’s export curbs as “an act of economic coercion” that could damage global supply chains dependent on rare earth elements, which are essential for electronics, defense systems, and clean-energy technologies.
He added that the United States would work with allies, including the European Union, Japan, and India, to coordinate a collective response and reduce reliance on Chinese mineral supply.
Despite the renewed trade tension, Bessent noted that technical-level talks between U.S. and Chinese officials had resumed over the weekend.
He confirmed that both sides remain in contact ahead of the International Monetary Fund and World Bank meetings later this month and that a Trump-Xi meeting is still expected in South Korea.
Beijing, however, defended the new export controls, saying they are necessary to safeguard national security and protect domestic industries.
China’s Commerce Ministry accused Washington of weaponizing trade policy and vowed to “respond firmly” to any additional tariffs.
Analysts warn that the standoff could strain already fragile global markets, with investors bracing for a new round of supply-chain disruptions.
Bessent reiterated that the United States does not seek confrontation but will act decisively to protect its economic interests and those of its allies.
“China has chosen a path of confrontation through restriction,” he said.
“We will choose resilience through cooperation”.
