US treasury secretary calls China's restrictions on rare earths a 'mistake'

Treasury Secretary Scott Bessent on Saturday called China's decision to impose restrictions on the export of rare earths a "mistake," and warned of Beijing using them as a coercive tool in the international arena.

In October, China announced controls on the export of these strategic materials, essential for industries such as automotive, defense and consumer electronics. The move generated significant tensions in trade negotiations with Washington and sparked concern in global markets due to its impact on supply chains in this key sector.

During an interview with the Financial Times, Bessent stated: "China has alerted everyone to the danger. They’ve made a real mistake. It’s one thing to put the gun on the table. It’s another thing to fire shots in the air."

Tensions were defused after the meeting between Presidents Xi Jinping and Donald Trump, held on Thursday as part of the APEC summit in South Korea, where both sides agreed to ease the trade dispute. Subsequently, China announced a one-year suspension of certain export restrictions, including those related to rare earths.

Bessent stressed that the United States has taken steps to counter any future similar actions by Beijing and noted that the international reaction to the Chinese restrictions surprised the Asian country's leaders.

The dispute evidences the growing strategic importance of rare earths, which have become an instrument of geopolitical and economic influence for China, and reflects the challenges faced by the U.S. and its allies in ensuring the security of their supply chains in critical sectors.