U.S. officials call China rare earth export controls a threat to global supply chains

Top U.S. officials on Wednesday criticised China’s expansion of rare earth export controls, warning it threatens global supply chains, though they said Beijing could still reverse course to avoid U.S. retaliation.

U.S. Trade Representative Jamieson Greer called China’s proposed restrictions a “global supply-chain power grab,” while Treasury Secretary Scott Bessent stressed that Washington does not want to escalate the conflict, which has roiled markets and strained U.S.-China relations.

As of Tuesday, President Donald Trump still expected to meet Chinese President Xi Jinping in South Korea later this month. Greer noted that China has not yet implemented the new regulatory system, and the U.S. has not enacted a retaliatory 100% tariff increase on Chinese imports.

The two sides have maintained a delicate six-month truce on tariffs, repeatedly extended in 90-day increments. Bessent suggested a longer extension could be possible ahead of the leaders’ meeting.

The tensions come after both countries imposed port fees on each other’s ships, adding a new dimension to the trade fight. While the International Monetary Fund upgraded its global growth forecast, officials said China’s actions violate previous U.S.-China agreements and highlight the risks of supply dependence.

Bessent warned that if China proves to be an unreliable supplier, Washington could implement additional export controls or tariffs, including on Chinese purchases of Russian oil, in coordination with European partners. He also noted evidence that Chinese components were used in Russian drones in Ukraine.

Officials said they remain optimistic that discussions with China could de-escalate the situation, while underscoring the potential economic consequences of continued Chinese restrictions on rare earth exports, critical for technology and defence sectors worldwide.

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