Trump officials lash out at China’s attempt to ‘command and control’ the global economy

Top U.S. officials on Wednesday condemned China’s planned export crackdown as a “global supply chain power grab” that will require a coordinated response by allies.

Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer, speaking at a joint press conference, said Beijing’s decision to restrict rare earths and other products was wildly out of proportion with any trade measure taken by the U.S. or other trading partners in recent months.

Mr. Bessent said the U.S did not want to “decouple” with China, but it would not be bullied, either.

“China is a command and control economy, and the United States and our allies will neither be commanded nor controlled,” Mr. Bessent said. “They are a state economy, and we’re not going to let a group of bureaucrats in Beijing try to manage the global supply chains.”

Mr. Bessent signaled he would rally fellow economic officials at World Bank and International Monetary Fund meetings in Washington this week.

“This should be a clear sign to our allies that we must work together, and work together we will,” Mr. Bessent said.

China last week said it would restrict the export of rare earth elements that are critical components to smartphones, electric vehicles and military equipment. It also said foreign companies must seek special permission to acquire products that contain rare earths.

Beijing has characterized its restrictions, which are scheduled to take effect on Nov. 8 and Dec. 1, as a response to prior trade actions by the U.S.

Mr. Bessent said China was trying to “backfill” the narrative by blaming U.S. actions.

The secretary had strong language for a Chinese trade official, Li Chenggang, saying he showed up uninvited for meetings in Washington earlier this year and promised to unleash chaos if the U.S. imposed fees on Chinese ships docking in American ports. Mr. Bessent said the official was “unhinged” and “disrespectful.”

Mr. Greer said China’s moves repudiated months of work between the world’s largest economies.

Over the past six months, the U.S. and China had several meetings in pursuit of “a stable tariff situation and a continued flow of rare earths,” he said, adding, “China’s announcement is nothing more than a global supply chain power grab. It is an exercise in economic coercion on every country in the world.”

Mr. Greer said he hopes China doesn’t follow through on its plans.

“If 0.1% of a product has a Chinese rare earth in it, it could be controlled by this,” Mr. Greer said. “The scope and the scale [of the plan] is just unimaginable, and it cannot be implemented.”