The United States is considering potential countermeasures to China’s recently announced export restrictions on rare earth elements, Treasury Secretary Scott Bessent said in an interview with Fox News ahead of his trip to Malaysia for the ASEAN Summit.
Bessent stated that while the Trump administration remains hopeful about progress during the upcoming Trump–Xi meeting in South Korea, it will not accept what he described as Beijing’s “unworkable and unacceptable” export licensing regime.
“These wide-ranging export controls on rare earths affect the entire world. This is China versus the globe—it’s not just the US,” Bessent said. “The licensing system they’ve proposed is unworkable and unacceptable. If we can’t negotiate a pause or relief, the US and its allies are considering how to respond.”
The Treasury Secretary is scheduled to meet his Chinese counterpart, Vice Premier He Lifeng, during the ASEAN Summit in Kuala Lumpur. Bessent said he hopes to reach a resolution before the Trump–Xi talks next week.
“I’m hoping we can iron this out over the weekend so that the leaders can begin their discussions on a more positive note,” he added.
Bessent described the upcoming meeting between President Donald Trump and President Xi Jinping as an opportunity to rebuild economic cooperation.
“President Trump holds great regard for President Xi; they’re in frequent contact,” Bessent noted. “It would be unfortunate if their first in-person meeting during President Trump’s second term were spent addressing disputes instead of fostering constructive dialogue.”
He emphasized that “all options are on the table” and confirmed that discussions so far have been extensive.
“We’re set for two days of comprehensive talks. This will be our fifth meeting following sessions in Geneva, London, Stockholm, and Madrid—now we’re moving to Asia,” he said.
Bessent also confirmed he will accompany President Trump to Japan for talks with the new Japanese Prime Minister, Sanae Takaichi, describing her as “a protégé of former Prime Minister Shinzo Abe, with whom President Trump shared a close relationship.”
China’s move to impose sweeping export controls on rare earth minerals—crucial for electric vehicles, smartphones, and advanced military systems—has raised global concern over potential disruptions to key supply chains. The measures, announced on October 8, introduce a complex export licensing system that analysts warn could hinder production of essential technologies, according to Fox News.
Rare earth elements are vital to both consumer and defense industries, powering products such as EV batteries, radar systems, and cruise missiles. According to the US Geological Survey (USGS), China remains the world’s leading producer, accounting for nearly 70 percent of global output. In 2024, China produced about 270,000 tons of rare earths and held 44 million tons in reserves.
By comparison, the United States produced 45,000 tons last year with reserves of 1.9 million tons, while Australia mined 13,000 tons and reported 5.7 million tons in reserves.
The growing tensions come shortly after the US–Australia agreement, signed last week by President Trump and Australian Prime Minister Anthony Albanese, under which both nations will invest $1 billion each in rare earth and critical mineral projects. The deal includes measures to streamline mining permits and establish a price floor for critical minerals to strengthen non-Chinese supply chains.
In response to international criticism, Chinese Embassy spokesperson Liu Pengyu defended Beijing’s new export policy, stating to Fox Business that,
“The global industrial and supply chains have developed as a result of market choices.”
