As economic friction with China intensifies, the United States seems to be shifting its trade focus toward closer cooperation with India. In an interview this week, US Treasury Secretary Scott Bessent accused Chinese President Xi Jinping’s administration of engaging in “provocative economic behavior” following Beijing’s decision to tighten export controls on rare earth minerals — essential components used in electronics, defense systems, and electric vehicles.
Bessent revealed that Washington has begun rallying its allies, including India, European nations, and other Asian democracies, to respond collectively. “This has turned into China versus the rest of the world,” he told Fox Business. “They’ve announced new export restrictions set to take effect next month, and we’re pushing back hard. It’s unclear why Beijing chose this moment to act, but we’re not backing down.”
He emphasized that the US would not permit China to exploit its control over rare earths as a geopolitical weapon, calling the move an attack on global industrial stability. “They’ve aimed a bazooka at the supply chains and manufacturing base of the free world, and we’re not going to let that happen,” Bessent said. “China runs a command-and-control economy, but they won’t command or control us.”
Bessent further noted that Washington was asserting its sovereignty through multilateral coordination. “We’ve already connected with our partners and expect strong backing from India, Europe, and democratic nations in Asia,” he added.
Meanwhile, former President Donald Trump also weighed in on the escalating trade dispute. In a Truth Social post, Trump praised Xi as a “highly respected leader” but warned that Washington would not tolerate unfair practices. He accused Beijing of enforcing “extremely aggressive” export barriers and hinted that the US might respond with tariffs reaching up to 100 percent.
Beijing, on its part, has imposed new approval requirements for foreign firms exporting rare earths and technologies linked to mining and recycling. It also ruled out export permits for materials tied to military applications — a move that Trump described as “sudden” and “shocking.”
