US Treasury chief says struggling China wants ‘to pull everybody else down with them’

ISTANBUL

US Treasury Secretary Scott Bessent said Tuesday that China's imposing export restrictions on technology-related resources is an attempt to undermine the world’s economy.

Bessent told the Financial Times newspaper that decisions on rare earths and minerals are an attempt by China “to pull everyone else down with them.”

“If they want to slow down the global economy, they will be hurt the most,” he said.

“They are in the middle of a recession/depression, and they are trying to export their way out of it. The problem is they’re exacerbating their standing in the world,” Bessent stated.

His remarks came after China said on Oct. 9 that it would no longer allow the export of rare earth elements for military purposes, the first time it had taken the measure.

Rare earth magnets are used by the US in several of its most critical weaponry systems, including smart bombs, Tomahawk missiles and the F-35 aircraft.

US President Donald Trump responded by threatening to impose 100% tariffs on China and canceling his meeting with President Xi Jinping.

But Trump later hinted that he would not carry out his pledge to impose a "massive increase of tariffs" on China.

“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I,” Trump wrote on his Truth Social platform. “The USA wants to help China, not hurt it.”