US officials blast China’s actions on rare earths, urge Beijing to back down

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1. Top U.S. officials criticized China’s recent expansion of rare earth export controls, labeling it a significant threat to global supply chains. U.S. Trade Representative Jamieson Greer described the restrictions as a “global supply-chain power grab,” asserting that neither the U.S. nor its allies would tolerate them. Despite escalating tensions, both Greer and Treasury Secretary Scott Bessent emphasized their desire to prevent further conflict and indicated that China could still reverse its measures. U.S.-China relations remain fragile, with President Trump expecting to meet with President Xi Jinping later this month, amid hopes for de-escalation after weeks of heightened tensions. Bessent highlighted that while the U.S. prefers engagement over decoupling, it is prepared to take additional measures if China proves unreliable as a supplier.

2. Bessent thinks this is an act of desperation by China and a sign of their economic issues.

   He said this with a straight face while acting like Trump’s hitman on tariffs.

3. I don’t think China will back down this time. The RE licencing and bans are clearly aimed at limiting foreign military and key industry productions. China obviously knows very well how disruptive to the world and the US the restrictions are. It will take at least a few years to restore rare earth processing outside China. They recently even banned their own companies to buy Nvidia chips, which suggests that the RE ban now is not some bargaining chips to negotiate with the US to lessen chips restrictions.

   Unless there are huge concessions or big IP transfers from the US (which will do even more harm than good to the US), China will keep the RE bans. China may be preparing for the Taiwan invasion around 2027 and try to gain more relative advantages against the US by limiting the US military productions now.

4. “I know I just called you my nº1 enemy and started a fight, but can you stop fighting back? It’s not fair! At least hold you punches, pretty please”

5. Play stupid games, get stupid prizes. Nobody to blame but Trump.

6. This is not a trade measure, and it should not be down played as such. China is introducing regulatory measure and long arm jurisdiction on global military production, with tools and language borrowed directly from EAR. 

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