'Expect support from India': US Treasury Secretary warns China on rare earth curbs

US Treasury Secretary Scott Bessent has warned that Washington and its allies will not allow Beijing to proceed unchecked with its new export restrictions on rare earth materials, calling it a direct challenge to the global supply chain. He described the situation as "China versus the rest of the world", saying the US would coordinate with partner nations, including India and European allies.

"It's China versus the world. They had pointed a bazooka at the supply chain and industrial base of the entire free world. We are not gonna have it. China is a command-and-control economy. We're going to assert our sovereignty in various ways. We've already been in touch with allies. We will be meeting with them this week. I suspect we will get substantial global support from the Europeans, from Indians, and the democracies in Asia - and we will not let the export restrictions and monitoring go on," Bessent said while speaking to Fox News.

He added that while the US remains open to dialogue, Washington is prepared to respond forcefully if Beijing does not reverse course. "I believe China is open to discussion on this. If they are not, we have substantial levers on our side that we can pull in the equivalent and probably even more aggressive than they have pulled on the rare-earth. We don't want to do it. Here in the US, we have the all-hands-on-deck policy," he said.

Bessent also stressed that Washington aims to "de-risk, not decouple" from China, underlining efforts to strengthen domestic manufacturing in critical sectors. "We do not want to decouple. We want to de-risk. The de-risking—critical minerals is part of it, semiconductor independence is part of it, bringing the pharmaceutical industry back on shore, and everything that President Trump has done with the America First agenda," he said.

On President Donald Trump's decision to delay the 100 per cent tariff on Chinese goods until November 1, the secretary said the move was intended to de-escalate tensions ahead of Trump's planned meeting with President Xi Jinping in Korea. "We have substantially de-escalated. President Trump said that the tariffs would not go into effect until November 1. He will be meeting with President Xi in Korea...I believe that will still be on. There has been substantial communication over the weekend," he said, adding that there will be several staff-level meetings between US and Chinese officials during the IMF–World Bank meetings in Washington.

He said all options remain open if China persists with its restrictions. "Everything is on the table. I'm optimistic that this can be de-escalated but we're willing to do whatever it takes and to adopt whatever posture it takes. Again, this is a global problem and our global allies will follow us on this," he said.

Bessent also noted that Washington had earlier imposed 12 countermeasures on China, affecting sectors from natural resources to aviation components, and pointed out the imbalance in educational exchange. "We have 300-400,000 Chinese students studying here as opposed to 800 American students in China. That is substantially imbalanced," he said.

China on Sunday defended its export control measures on rare earths and related technologies as a legitimate move to safeguard global peace, warning Washington of "resolute measures" if President Donald Trump proceeds with his 100 per cent tariff threat. 

The Chinese restrictions cover exports of rare earths, lithium batteries, and superhard materials, as well as overseas transfers of mining and processing technologies. Beijing said the controls were prompted by concerns that foreign companies were using Chinese-sourced materials for military applications.

The US has accused Beijing of weaponising critical materials, with Bessent reiterating that "there is no business model that shows it is a good idea to harm your customers."