Scott Bessent has said Beijings export controls on rare earth minerals damage the global economy

US Treasury Secretary Scott Bessent has said Beijing's new export controls reflect a 'Leninist business model' that could backfire on China and slow global growth.

Last week, China announced plans to expand export restrictions on certain strategic minerals with dual-use in military applications, citing national security. Under the new rules, foreign firms must obtain special approval before exporting goods containing even minimal amounts of Chinese-sourced rare earth elements. US President Donald Trump responded by threatening to target Chinese imports with an additional 100% tariff.

In an interview with Financial Times on Tuesday, Bessent accused Beijing of trying to hurt the global economy with its new export curbs, saying it's "a sign of how weak their economy is, and they want to pull everybody else down with them."

"Maybe there is some Leninist business model where hurting your customers is a good idea, but they are the largest supplier to the world," Bessent said. "If they want to slow down the global economy, they will be hurt the most," he added.

China firmly rejected Trump's tariff threats, saying they are "not the right way" to deal with the dispute and that Washington should "correct" its approach and act on the understandings the two presidents reached in their phone calls.

On Tuesday, Beijing sanctioned American shipping units and warned of further retaliatory steps.

Trump and Chinese President Xi Jinping are expected to meet in South Korea in late October. Bessent told Fox Business on Monday the high-level meeting remains on track. "The 100% tariff does not have to happen," he said.

The latest escalation echoes earlier rounds of the trade war, when both sides imposed sweeping tariffs on billions of dollars in goods. The current tariff truce, extended in August, is due to expire in November. Under the 90-day extension, US tariffs on Chinese imports were reduced from 145% to 30%, while China's tariffs on American products dropped from 125% to 10%.

(RT.com)