Besent: "Considering Software Export Controls...In Coordination with G7"
Countermeasure Against China's Rare Earth Export Controls
Intense Standoff Ahead of U.S.-China Summit
The Donald Trump administration is reviewing export control measures on products containing U.S. software technology to China. Ahead of the U.S.-China summit scheduled for next week, both sides appear to be leveraging export controls on rare earth elements and software as bargaining chips to maximize their negotiating power.
Scott Besant, United States Secretary of the Treasury, is answering questions from the press in front of the West Wing of the White House on the 22nd (local time). Photo by AFP Yonhap News
On the 22nd (local time), Scott Besant, United States Secretary of the Treasury, met with reporters and, when asked about the possible introduction of software export restrictions to China, stated, "Everything is on the table." He added, "Whether it is software, engines, or anything else, if export control measures are implemented, they will be pursued in coordination with the G7 allied countries."
This statement confirmed an earlier report by Reuters regarding the review of software export controls to China. Reuters, citing multiple sources, reported that the Trump administration is discussing restrictions on the export of products containing U.S. software technology to China.
It is reported that these measures could include items such as laptops and jet engines, similar to the sanctions imposed on Russia after its invasion of Ukraine. However, sources noted that the measures may not actually be implemented.
Secretary Besant also mentioned the possibility of additional export controls, while emphasizing that trade negotiations with China are being conducted "with good intentions" and "great respect."
This move is interpreted as a countermeasure against China's export controls on rare earth elements targeting the United States. Rare earth elements are essential materials for advanced industries such as electric vehicle batteries and semiconductors, and China accounts for about 70% of the global supply. In response, the United States has strongly opposed China's export control measures and warned that it could impose an additional 100% tariff on Chinese products next month.
In particular, as the U.S.-China summit is scheduled to take place during the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea, next week, both countries are engaging in a tense standoff by exchanging export control measures. Ultimately, the review of software export restrictions is also seen as a pressure tactic to strengthen negotiating leverage. President Trump has stated that the U.S.-China summit will proceed as planned, but has also mentioned the possibility of it falling through, heightening tensions until the last minute.
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