U.S. Treasury Chief Blasts China’s Rare-Earth Export Controls
U.S. Treasury Secretary Scott Bessent said this week that China’s recent move to tighten export controls on rare earth minerals was a “real mistake” that alerted global supply chains to Beijing’s capacity and willingness to use these materials as economic leverage. He characterised the decision as a strategic misstep by China rather than an isolated action.
Context of Rare-Earths Dispute
China dominates the global processing and export of rare earth minerals – essential for electric vehicles, defence systems and high-tech electronics. Bessent warned that China’s export restrictions undermined the global market and said Washington is prepared to take “offsetting measures” if Beijing uses rare earths as a tool of coercion. The remarks reflect escalating technology and trade tensions between the two powers.
Implications for Markets and Policy
The reaction underscores the vulnerability of global industries to supply-chain disruptions in critical minerals. For the U.S., Bessent’s comment signals a firmer posture: not only seeking diversification of supply away from China, but also signalling possible counter-strike mechanisms. Analysts say the dispute could drive accelerated investment in alternative rare-earth sources, allied supply-chains and revisiting trade policy frameworks for strategic minerals.
