US Seeks Global Support Against China’s Rare Earth Export Controls

US Treasury Secretary Scott Bessent announced on October 23, 2023, that the United States anticipates support from its allies, including India, in response to China’s recent export controls on rare earth elements. Speaking in an interview with Fox News, Bessent characterized these controls as indicative of a larger conflict, stating that it represents “China versus the world.” He expressed confidence that US partners would rally behind Washington’s efforts to counteract these measures.

Bessent mentioned that discussions with allies are already underway, with meetings planned for this week. He expects “substantial global support” from European nations, India, and other democracies in Asia. He emphasized the global nature of the issue, saying, “This is a global problem, and I think our global allies will follow us on this.”

In light of China’s aggressive export restrictions, Bessent asserted that the US will not allow these measures to continue unchallenged. He indicated that “everything is on the table” regarding potential retaliatory actions. Earlier in the summer, the US imposed 12 countermeasures against China, particularly targeting natural resources critical for manufacturing plastics used in jet engines. Bessent noted that these actions had significant impacts, including the grounding of a substantial portion of China’s civilian aircraft fleet.

On October 20, President Donald Trump threatened to impose additional tariffs of 100 percent on Chinese goods starting November 1, along with export controls on “any critical software.” He also raised the possibility of cancelling a planned meeting with Chinese President Xi Jinping due to what he described as Beijing’s “hostile” trade behavior following the expansion of export controls on rare earth elements.

Despite these tensions, Trump later softened his stance, stating on October 22 that there is no cause for alarm regarding China, suggesting that Xi simply “had a bad moment.” Bessent confirmed that the meeting between Trump and Xi would still take place in South Korea, emphasizing that substantial communication had occurred over the weekend.

Trump reassured the public that the tariffs would not take effect until November 1 and reiterated that the meeting with Xi is confirmed. Both nations have been engaged in trade negotiations since April, with a temporary truce set to expire on November 10.

As the situation evolves, the US aims to consolidate a united front against what it perceives as unfair trade practices by China, while navigating the complexities of international diplomacy. The outcome of this confrontation over rare earth elements may have far-reaching implications for global supply chains and international relations.