“It's a signal of how weak their economy is and that they want to drag everyone down,” Bessent said. — Maybe there is some Leninist economic model in which harming your customers is a good idea, but they are the largest supplier in the world. If they slow down the global economy, they will suffer the most – he added.
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“China is in recession and trying to export problems”
Bessent also stated that China's economy is “in the middle of a recession or depression.” “They are in the middle of a recession/depression and they are trying to get out of it by exporting. The problem is that they are deteriorating their position in the international arena” – he said.
The Treasury Secretary's statements come three weeks before the planned meeting of US President Donald Trump with the President of the People's Republic of China, Xi Jinping, in South Korea.
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New restrictions from Beijing and US threats
China has announced broad restrictions on the export of rare earth metals and other strategic raw materials that are essential to its technology, defense and energy industries. In response, Donald Trump threatened to impose additional 100% tariffs on imports from China from November 1.
According to “FT” sources close to the case The US administration has already prepared a package of retaliatory measures that it will implement in the event of no agreement. The issue is to be a priority during the meeting of finance ministers of the G7 countries in Washington during the World Bank and IMF summit.
Controversy over export controls and potential tariffs heralds another stage in the intensification of the trade conflict between the world's two largest economies. Analysts emphasize that rare earth raw materials are a key element of global supply chains, and their limitation may have far-reaching consequences for high-tech industries and the national security of many countries.
The Trump-Xi meeting is intended to be an opportunity to ease tensions, but the current rhetoric indicates that both sides are also preparing for an escalation scenario.
