US: "China Trying to Control Global Economy with Rare Earths... Let's Stand with Our Allies"

Unprecedented Joint Press Conference by Treasury Secretary and Trade Representative
Attempt to Rally Allies Against China

The administration of former U.S. President Donald Trump urged on the 15th (local time) that the United States and its allies must stand together against China, accusing Beijing of attempting to control the global economy through rare earth export restrictions.

Jamieon Greer, the United States Trade Representative (USTR), defined China's rare earth export restrictions as "economic coercion against all countries in the world" during a rare joint press conference with Treasury Secretary Scott Vestent at the Treasury Department in Washington DC. He pointed out, "These regulations effectively allow China to control the entire global economic and technological supply chain."

Scott Vestent, the U.S. Secretary of the Treasury, and Jamieon Greer, the United States Trade Representative (USTR), are holding a press conference at the Treasury Department in Washington DC on the 15th (local time). Photo by Yonhap News

He argued that China's latest move is not simply an attempt to gain leverage in negotiations with the United States, but rather part of a broader plan to dominate global supply chains.

Representative Greer stated, "For example, if a smartphone is manufactured in South Korea and sold to Australia, the company must first obtain approval from China, because the phone may contain semiconductors with rare earth elements sourced from China. Neither we nor our allies will follow such a system."

Treasury Secretary Scott Vestent said, "If some within the Chinese government wish to slow down the global economy through disappointing actions and economic coercion, it is the Chinese economy that will suffer the most. Make no mistake-this is 'China versus the world.'"

He continued, "China has imposed unacceptable export controls on the entire world," and emphasized, "Neither we nor our allies will comply with or be controlled by these directives." He added, "This should be a clear signal to our allies that we must cooperate," noting that he plans to discuss the issue with allies during this week's annual meetings of the World Bank (WB) and International Monetary Fund (IMF).

Meanwhile, Bloomberg News reported that Secretary Vestent suggested a long-term tariff truce could be possible depending on China's future actions. The United States and China agreed to a tariff war truce in Switzerland last May and have been renewing the agreement every 90 days. The next decision on renewal is scheduled for November 10.