The U.S. Treasury, in unusually blunt language, warned Wednesday that countries around the world may be forced to decouple their trade and supply chains from China if Beijing moves ahead with sweeping new export controls.
Speaking at a press briefing, Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer framed the Chinese initiative as a global threat to economic stability.
Bessent told reporters, “If China wants to be an unreliable partner to the world, then the world will have to decouple.
"The world does not want to decouple. We want to de-risk.
"But signals like this are signs of decoupling, which we don’t believe China wants.”
His remarks echoed a Financial Times headline Wednesday reporting that the U.S. warned the world would move away from China if export controls are imposed.
Greer added that the planned export restrictions on rare earths and critical minerals amount to a “global supply-chain power grab” and constitute “economic coercion” against companies and nations that rely on Chinese inputs.
He said Washington would not accept Beijing’s newly drafted licensing regime, which would require non-Chinese firms exporting products incorporating certain critical minerals to first obtain Chinese government permission.
The proposal, he argued, would shake up industries from semiconductors to defense electronics.
Chinese authorities defended the move as a response to U.S. sanctions, but U.S. officials view it as a premeditated strategy to tighten control over global tech chains.
The stakes are high. China accounts for a dominant share of the world’s rare earth, magnet, and refined critical mineral production.
Experts warn that even limited export controls could spark shocks to industries that depend on intricate, transnational supply chains.
Still, the U.S. remains hopeful negotiations can avoid a full-scale rupture.
Bessent and Greer both expressed optimism that diplomacy might prevail — and made clear that Washington stands ready to retaliate if China follows through.
President Donald Trump has already threatened to impose 100% tariffs on Chinese imports effective Nov. 1 if Beijing presses ahead.
Attention now turns to whether Chinese President Xi Jinping and Trump will use their upcoming APEC meeting to defuse tensions.
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