China Made ‘A Real Mistake’ With Rare-Earth Export Curbs: US Treasury Secretary

Last Updated:November 01, 2025, 17:02 IST

Scott Bessent criticised Beijing’s decision to tighten control over rare earth exports and said the move revealed China’s readiness to weaponise materials vital to defence systems.

US Treasury Secretary Scott Bessent. (File/Reuters)

US Treasury Secretary Scott Bessent has said that China has made a “real mistake" by threatening to shut off the exports of rare earth minerals and drew attention to Beijing’s ability to use them as a coercive tool.

In an interview with the Financial Times published on Saturday, Bessent criticised Beijing’s decision to tighten control over rare earth exports and said that the move revealed China’s readiness to “weaponise" materials vital to defence systems, electric vehicles, and consumer electronics.

“China has alerted everyone to the danger. They’ve made a real mistake," Bessent said, adding, “It’s one thing to put the gun on the table. It’s another to fire shots in the air."

Bessent noted that while the US and China had reached a certain “equilibrium," Beijing could no longer rely on its dominance in critical minerals as a tool of coercion.

“There’s an agreement that, ceteris paribus, we have reached an equilibrium, and we can operate within that equilibrium over the next 12 months," he said.

The restrictions quickly became a flashpoint in US–China trade discussions. Beijing’s announcement stunned markets and disrupted supply chains reliant on the minerals, an area where China holds significant global influence.

The matter was discussed when President Xi Jinping and US President Donald Trump met at the APEC summit in South Korea this week. Following their talks, Beijing announced it would suspend some export limits, including those related to rare earth materials, for one year.

Bessant told the news outlet that China would not be able to pull the same move again, saying, “We have offsetting measures." He believed that China did not expect the level of global pushback generated by the export controls.

“I think the Chinese leadership were slightly alarmed by the global backlash to their export controls," he said.

China is the biggest producer of rare earth minerals in the world. These rare-earth minerals have key technical utilisation in making fighter jets, robots, electric vehicles, and other high-tech products.

(With inputs from agencies) 

Shobhit Gupta

Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben...Read More

Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben...

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