Treasury Secretary Scott Bessent has accused China of deliberately trying to hurt the global economy after Beijing imposed sweeping new export controls on rare earths and critical minerals, the Financial Times reported.
In the interview, published Monday, Bessent said the timing of China’s restrictions — coming just weeks before President Donald Trump is expected to meet with Chinese President Xi Jinping in South Korea — reflects deep economic trouble in Beijing.
“This is a sign of how weak their economy is, and they want to pull everybody else down with them,” Bessent told the news outlet.
“Maybe there is some Leninist business model where hurting your customers is a good idea, but they are the largest supplier to the world. If they want to slow down the global economy, they will be hurt the most.”
Bessent told the FT that China’s economy was effectively “in the middle of a recession or depression” and that the country was “trying to export its way out of it” — a strategy he warned would backfire internationally.
The Financial Times reported that Bessent’s remarks came just days after China announced far-reaching restrictions on exports of rare earths and critical minerals, prompting Trump to threaten an added 100% tariff on Chinese imports beginning Nov. 1.
According to the FT, U.S. officials were caught off guard by what they described as Beijing’s “disproportionate” move.
One senior official told the FT that Chinese negotiator Li Chenggang had “previewed” many of Beijing’s current tactics as early as August — threatening the U.S. with “hellfire” if trade talks did not go his way.
Bessent also said it was possible Xi was unaware of the rare-earths decision, citing infighting between Beijing’s ministries. A senior U.S. official quoted by the newspaper said the ministries of Commerce and State Security — both hard-line factions — were driving policy, while China’s Ministry of Finance appeared to be sidelined.
The Financial Times reported that Washington is drafting possible countermeasures, including new export-licensing requirements on software sold to Chinese companies — a move that could hit China’s tech sector hard.
Trump administration officials said they are prioritizing the issue ahead of upcoming G7 and World Bank-International Monetary Fund meetings in Washington this week.
One U.S. official told the FT that the administration remains confident new tariffs would not rattle markets, saying Trump’s trade strategy has already reduced the U.S. deficit with China by 25% this year.
“We also have much more leverage because of the unity among Western and Asian democracies,” the official said.
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