US Treasury Secretary Scott Bessent on Tuesday accused China of trying to “harm” the global economy by imposing broad export controls on rare earths and essential minerals, disrupting global supply chains.
In an interview with the British newspaper Financial Times (FT)Bessent said China’s introduction of the controls — three weeks before a possible meeting between US President Donald Trump and Chinese dictator Xi Jinping in South Korea — reflects “problems” in its own economy.
“This is a sign of how weak their economy is, and they want to drag everyone else down with them,” Bessent told the Financial Times.
“They are in the middle of a recession/depression and are trying to export their way out of it. The problem is that they are deteriorating their position in the world,” added the US Treasury Secretary.
In this sense, he joked that perhaps there is a “Leninist business model in which harming customers is a good idea, but they are the biggest suppliers in the world.” He also warned: “If they want to slow down the global economy, they will be the main losers.”
Bessent’s words came after China revealed expansive restrictions on rare earths and essential mineral supplies, prompting Trump to threaten to impose an additional 100% tariff on imports from China starting November 1.
This new chapter in the trade war between the US and China caused stock exchanges like Wall Street to open lower this Tuesday, with losses of 1.20%, in addition to a drop in oil prices, with Brent falling more than 2%, to less than US$62.
