Bessent says China "can't be trusted" as trade fight escalates
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Treasury Secretary Scott Bessent (left) and US Trade Representative Jamieson Greer at a press conference in Sweden in July. Photo: Magnus Lejhall/TT News Agency/AFP via Getty Images
U.S. Trade Representative Jamieson Greer said that China's plans for harsh export controls risk violating a trade pact struck earlier this year, as Treasury Secretary Scott Bessent warned "they can't be trusted."
Why it matters: The Trump administration is signaling a new flare in the U.S.-China trade war, with higher import taxes on the horizon without a new truce in tensions.
What they're saying: "This rule gives China control over the entire global supply chain," Greer said at a press conference at the Treasury Department.
- "Many are suggesting that China's action is simply posturing to leverage the negotiations with the United States," Greer added.
- "While that may be one element of China's approach, it's obvious this is part of a broader play by China to control the world's supply chains."
Zoom in: Greer said that an agreement made in Switzerland earlier this year said that the U.S. would lower tariffs in exchange for access to China's rare earths minerals.
- "We have lowered tariffs since that time but now the Chinese have expanded their export controls," Greer said, holding up a copy of the so-called "Geneva agreement."
Catch up quick: President Trump threatened to impose 100% tariffs on Chinese goods if China follows through on plans to tighten export controls on minerals critical to American industry.
- China announced export controls on a range of minerals the U.S. desperately needs to power the AI boom and other key sectors, like defense and auto — measures that could begin to take effect on Nov. 1.
- No other country besides China has more control over the production and processing of the world's rare earths supply.
The intrigue: Treasury Secretary Scott Bessent, who spoked to reporters on Wednesday alongside Greer, said that U.S. firms had signaled to the Trump administration that rare earths and magnets had stopped flowing.
- "Some U.S. auto companies have called us in the past week and said that there has been a clear slowdown in magnets," Bessent said.
- "We asked the Chinese about this and they said, 'Oh, it probably had something to do with the holiday,'" Bessent said. "They can't be trusted."
What to watch: Bessent said that he spoke to President Trump on Tuesday night and — as of then — plans for Trump to meet with China's Xi Jinping later this month at a summit in South Korea were still a go.
- "I am optimistic this can be de-escalated," Bessent told reporters.
Editor's note: This story has been updated with details on an upcoming summit.
