US Treasury Secretary Scott Bessent expects backing from India and European nations to counter Beijing’s tightening grip over the global rare earth supply chain — even as Washington maintains steep tariffs on Indian goods.
“It’s China versus the world,” Bessent said at CNBC International’s Invest in America forum, held on the sidelines of the IMF–World Bank meetings in Washington.He stressed that the dispute was “not a US–China problem”, adding that the US does not seek to decouple from China but will not be swayed by short-term market pressures. “We won’t negotiate because the stock market is going down,” he said.
Bessent accused Beijing of “trying to backfill the narrative” on its recent export restrictions and said the Chinese were “planning to erect new barriers”.
While he insisted the US does not wish to escalate tensions, he said Washington would respond collectively with partners in Europe, Australia, Canada, India and beyond.
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Under Beijing’s new rules, announced on 9 October, foreign entities must now obtain government licences to export any products containing more than 0.1% of domestically sourced rare earths — or manufactured using China’s extraction, refining, magnet-making or recycling technologies. The curbs also expand the list of restricted minerals and prohibit exports for foreign military use.
China dominates nearly 70% of global rare earth mining and 90% of processing, giving it immense leverage across critical sectors such as electric vehicles, wind turbines, semiconductors and defence systems. Among the key minerals is dysprosium, vital for EV motors and advanced electronics.
Beijing has defended the restrictions as necessary to safeguard national security amid “frequent military conflicts”, a reference to rising geopolitical strains. The move has shaken global supply chains and prompted the US to threaten retaliatory tariffs of up to 100% on Chinese goods from November 1.
The restrictions come just weeks ahead of a possible meeting between US President Donald Trump and Chinese President Xi Jinping, adding a fresh layer of tension to an already fraught trade landscape.
He also hinted that the US could unveil a series of trade announcements during President Trump’s upcoming Asia trip.
First Published: Oct 15, 2025 7:06 PM IS
