U.S. Treasury Secretary Scott Bessent speaks to the press, on the day of U.S.-China talks on trade, economic and national security issues, in Madrid, Spain, September 15, 2025.
Violeta Santos Moura | Reuters
Treasury Secretary Scott Bessent has made strong accusations against China, claiming that the nation is attempting to undermine the global economy by imposing export controls on essential resources for technology. In a recent interview with the Financial Times, Bessent stated that China’s actions regarding rare earths and minerals are a deliberate attempt to “pull everyone else down with them.”
He emphasized, “If they want to slow down the global economy, they will be hurt the most.” This statement comes at a critical time, just before a scheduled meeting between President Donald Trump and China’s President Xi Jinping.
On October 9, China announced a ban on the export of rare earth materials for military applications, marking a significant escalation in the ongoing trade tensions. This is the first time China has specifically targeted military use in its export controls. The U.S. relies on rare earth magnets for crucial weapons systems, including the F-35 warplane, Tomahawk missiles, and smart bombs.
In response, President Trump has announced a plan to impose 100% tariffs on Chinese goods, effective November 1, and has even threatened to cancel the upcoming meeting with Xi. The escalating dispute has led to significant volatility in the markets, with Wall Street stock averages experiencing sharp declines at the start of the day on Tuesday.
Bessent further commented on China’s economic situation, stating, “They are in the middle of a recession/depression, and they are trying to export their way out of it. The problem is they’re exacerbating their standing in the world.” This perspective highlights the complexities of the current trade dynamics and the potential repercussions for both nations involved.
