US warns China over trade moves as Trump seeks calm

As trade tensions with China intensify, U.S. Treasury Secretary Scott Bessent has accused Beijing of making “provocative” moves, following China’s announcement of new export restrictions on rare earth minerals.

Speaking on Fox Business on October 13, Bessent said the United States is pushing for global peace, while China is “financing war.” He called the Chinese export curbs a “bazooka" aimed at the supply chains and industrial base of the free world and stressed that the U.S. would assert its sovereignty and coordinate with allies, including Europe, India, and democracies in Asia.

Bessent noted that China’s restrictions, set to take effect next month, threaten crucial minerals used in advanced manufacturing and military technology. China controls around 70% of global rare earth mining and nearly 90% of processing capacity.

President Donald Trump sought to ease concerns over a potential trade war on October 12, after threatening to raise tariffs on Chinese imports to 100% from the current 55%. Posting on Truth Social, Trump reassured that China’s economic difficulties would “all be fine” and emphasised that the U.S. “wants to help China, not hurt it.”

Despite the tensions, Bessent expressed optimism that talks could de-escalate the situation, confirming that lines of communication with Beijing are open. He also mentioned that Trump is expected to meet with President Xi Jinping in South Korea later this month to discuss the dispute.

Bessent concluded, “Everything’s on the table… The U.S. will not be deterred. China is the largest exporter in the world and dependent on trade. We do not want to decouple; we want to de-risk.”

By Vugar Khalilov