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China’s move to tighten control over rare earth mineral exports has backfired, prompting the United States and its allies to ramp up efforts to secure alternative supplies of the critical materials, so says US Treasury Secretary Scott Bessent. Talking to Epoch Times, Bessent said that Beijing “made a real mistake” by attempting to use its dominance in rare earths for political leverage — a move that instead unified Western economies against what he called China’s “economic coercion”. Bessent reportedly noted that China’s export curbs on rare earth-related technologies in early October sent shockwaves through global markets, further straining already fragile supply chains. “China has alerted everyone to the danger. They’ve made a real mistake,” he said, comparing Beijing’s approach to “firing shots in the air” after brandishing a weapon.The restrictions quickly became a flashpoint in trade talks between Washington and Beijing, spurring the U.S. to accelerate efforts to diversify sources of key minerals. Following a high-level meeting between President Donald Trump and Chinese leader Xi Jinping at the APEC summit in South Korea, China abruptly announced a one-year suspension of the export controls.Bessent said the reversal showed Beijing’s concern about the global backlash and the potential loss of credibility as a reliable trading partner. He cautioned, however, that while the temporary suspension might ease tensions, China’s leverage over the rare earth supply chain is diminishing fast.“There’s an agreement that we have reached an equilibrium for the next 12 months,” Bessent said, adding that the U.S. now has “offsetting measures” in place to blunt China’s influence. He predicted that within 12 to 24 months, Beijing’s ability to use rare earths as an economic weapon will fade as Western nations expand mining and refining operations in Southeast Asia and other friendly regions.

European Union supports US against China

European Union Trade Commissioner Maros Sefcovic confirmed that the suspension also applies to the EU, underscoring how China’s actions have strengthened global resolve to reduce dependency on Chinese supplies.

Scott Bessent blames Biden government

Bessent also criticized previous U.S. administrations for being “asleep at the switch” while Beijing spent years consolidating its dominance in the rare earth sector. “Now this administration is going at warp speed over the next one, two years to get out from under this sword the Chinese have over us—and over the whole world,” he said on CNN’s State of the Union.As part of a broader understanding reached between Washington and Beijing, the U.S. will reduce tariffs on Chinese exports by 10 percent, while China has agreed to take new steps to curb fentanyl exports to the United States. The U.S. Drug Enforcement Administration has identified China as the largest supplier of the synthetic opioid fueling America’s overdose crisis.