Tensions between the two economic powers have escalated as top US officials accused China of violating a trade truce that was agreed earlier this year. US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer accused China of “economic coercion” and “a global supply chain power grab” in their unusually orchestrated presentation.
If China wishes to be a dependable partner to the world, then the world must decouple,” Bessent stated. However, they remained up to discussion, raising doubts about whether China will actually carry out the export restrictions it declared last week. In reference to China’s increased export restrictions, Greer stated on Wednesday that “the scope and the scale is just unimaginable, and it cannot be implemented.”
Roughly 90% of the world’s precious metals and magnets, which are essential for the production of high-tech products like smartphones and cars, are processed in China. Since many US businesses depend on the materials, its dominance of the sector is a major point of vulnerability in trade negotiations.
According to Beijing’s most recent regulations, foreign businesses must obtain permission from the Chinese government and explain their intended purpose before exporting goods that include even trace amounts of rare earth elements.
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