Two top Treasury Department officials blast China over its export ban on rare earth minerals and threaten that the US may decouple in response. Treasury Secretary Scott Bessent stated that Washington sought to avoid escalating the trade war with Beijing. 

At a presser on Wednesday, Trade Representative Jamieson Greer told reporters that Beijing’s new restrictions on exporting rare earths are a “global supply-chain power grab.” Bessent added that the restrictions could cause the countries to end their trade relationship with China. 

“Not only is China fueling Russia’s war (in Ukraine), but China’s actions have once again demonstrated the risk of being dependent on them, on rare earths and for that matter, anything,” Bessent said. “If China wants to be an unreliable partner to the world, then the world will have to decouple.”

On Tuesday, China expanded its export controls on rare earth minerals. Currently, Beijing restricts the export of 12 of the 17 rare earth elements. Additionally, China placed more scrutiny on the semiconductor trade. 

Approximately 90% of the world’s rare earth minerals and magnets are produced in China. Rare earths are essential in electric vehicles, smartphones, and other tech products. 

Besset said that there was a path to avoid escalating the trade war with China, and that Trump still planned to meet with Chinese President Xi later this week. “We don’t want to decouple from China,” he told reporters. 

“There have been many outreaches to the Chinese delegation. We are working on a meeting. President Trump is a go on meeting with Xi.” He added, “Trust between Trump and Xi is a reason that this hasn’t escalated.”