'China will hurt most': US trade czar attacks Beijing over 'chaos'; Trump ready to meet Xi

It's "China versus the world," asserted US treasury secretary Scott Bessent on Wednesday slamming Beijing’s rare earth export curbs, further vowing that Washington and its allies would "neither be commanded nor controlled.""If some in the Chinese government want to slow down the global economy through disappointing actions and through economic coercion, the Chinese economy will be hurt the most — and make no mistake: this is China vs. the world," Bessent told reporters at a press conference, during the IMF and World Bank fall meetings in Washington."This should be a clear sign to our allies that we must work together, and we will.... We do not want to decouple. We should work together to de-risk and diversify our supply chains away from China as quickly as possible," Bessent added.His remarks came days after Beijing imposed fresh controls on exporting rare earth technologies and materials, prompting the US to threaten an additional 100% tariff on Chinese goods, raising total duties to 130% starting November.Referring to internal political dynamics in China, Bessent said it was unclear whether the curbs represented a split within Beijing’s trade team but dismissed the notion that China intended to be an "agent of chaos."He recounted earlier threats from a lower-level Chinese trade official stating that, "There was a lower-level trade person who was slightly unhinged here in August … saying that China would unleash chaos on the global system if the US went ahead with our docking fees for Chinese ships.""I don’t believe China wants to be an agent of chaos," Bessent asserted.Trade tensions between the two powers have escalated during President Trump’s second term, with tit-for-tat duties reaching triple-digit levels before a temporary truce.Trump last week responded by threatening to hike tariffs on Chinese goods to triple-digit levels, rattling financial markets and straining US-China relations.This came after Beijing's latest rules, announced on October 9 that require both Chinese and foreign firms to seek government approval before exporting any product containing more than 0.1% rare earth elements by value. The curbs also extend to additional minerals and ban exports for foreign military use.China currently controls about 70% of global rare earth mining and nearly 90% of processing, giving it huge leverage over industries critical to global manufacturing, including electric vehicles, semiconductors, and defense.Bessent, however said that Washington might consider extending the pause on higher tariffs if China delays implementing its rare earth export curbs.In an effort to avoid further escalation, Bessent confirmed that President Trump is ready to meet Chinese President Xi Jinping in South Korea later this month, with officials from both sides in daily contact to arrange the meeting.It was due to trust between Trump and Xi that the trade conflict between the two countries has not escalated further, he told CNBC, highlighting that the countries were close to a return to an all-out trade war after China announced the expanded controls last week.Earlier, speaking to Fox Business on Monday, Bessent had even earlier called Beijing's move a direct challenge to the global economy, saying, "This is China versus the rest of the world."He stressed that the US would not allow China to weaponise its rare earth dominance, critical for defense, electric vehicles, and electronics. "They have pointed a bazooka at the supply chains and the industrial base of the entire free world. And, you know, we're not going to have it. China is a command and control economy. They are neither going to command [nor] control us," he said."We are going to assert our sovereignty in various ways. We have already been in touch with the allies. We will be meeting with them this week and, you know, I expect that we will get substantial global support from the Europeans, from the Indians, from the democracies in Asia," he added.The situation underscores ongoing tensions over global supply chains and rare earth materials, a sector critical to technology, defense, and manufacturing worldwide.