Beijing's rare earth export controls could slow global growth

U.S. Treasury Secretary Scott Bessent warned on Wednesday that Beijing’s recently expanded export controls on rare earth minerals risk slowing global growth and could prompt U.S. countermeasures, even as he said high-level talks between President Donald Trump and Chinese President Xi Jinping remain on track for a meeting in South Korea in late October. Bessent urged allies to coordinate responses and said Washington preferred to deescalate rather than sever economic ties with China.

Bessent made the remarks amid a flurry of trade actions that began after China announced new restrictions on exports of certain strategic minerals, citing national security. The new rules require foreign firms to obtain special approval before exporting goods that contain even small amounts of Chinese-sourced rare earth elements. In response, President Trump threatened to impose an additional 100 percent tariff on Chinese imports beginning November 1. Bessent told television interviewers, "The 100 tariff does not have to happen," and said lines of communication between the two leaders had reopened.

Beijing has rejected the tariff threat and said it would not be the correct way to resolve the dispute,...