Treasury Secretary Scott Bessent accused China of trying to weaken the global economy by slapping export controls on resources vital for technology.
In an interview with the Financial Times, Bessent said the moves over 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.
The move by China comes just ahead of a scheduled meeting between President Donald Trump and China’s Xi Jinping.
In an Oct. 9 announcement Beijing said it won’t allow the export of rare earths materials for military use, the first time it has targeted that specific use. The U.S. uses rare earths magnets for many of its most important weapons systems such as the F-35 warplane, Tomahawk missiles and smart bombs.
Trump has responded with 100% tariffs on Chinese goods starting Nov. 1 and has threatened to cancel the meeting with Xi. Markets have been volatile since the dispute escalated, with Wall Street stock averages down sharply to start the day Tuesday.
“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 told the FT.