US plans swift exit from China’s grip on rare earth supplies, treasury chief

US Treasury Secretary Scott Bessent has announced that the United States intends to end its reliance on Chinese supplies of rare earth elements within the next two years.

In an interview with CNN, Bessent underscored Washington’s determination to act swiftly in reducing strategic vulnerabilities linked to China’s dominance in the rare earths market, Caliber.Az reports.

He said that the United States was going to move at faster-than-light speed over the next one or two years and avoid the sword that China was holding over it, referring to Beijing’s leverage over critical materials essential for high-tech and defence industries.

Bessent emphasized that the United States does not seek to cut ties with China altogether but must nonetheless mitigate risks, noting that Beijing has proven to be an unreliable partner across several sectors.

To achieve greater supply chain resilience, the Treasury chief added that Washington plans to strengthen cooperation with democratic nations, including India, in developing alternative sources and refining capacities for rare earth elements.

To recall, Beijing announced new controls in October on exports of technologies related to rare earths, crucial for manufacturing in defence, automobile, consumer electronics and other industries.

The restrictions were a major sticking point in trade negotiations between Beijing and Washington, and China said it would halt them after presidents Xi Jinping and Donald Trump met.

Xi and Trump met on the sidelines of the Asia-Pacific Economic Cooperation summit in the South Korea last week.

Following the talks, China said it would suspend certain export restrictions, including on rare-earth materials, for one year.

The controls had rattled markets and snarled supply chains in the strategic sector, a key source of international leverage for Beijing.

By Vafa Guliyeva