"What they're saying: "We don't want to de-couple from China but we need to de-risk. They've shown themselves to be an unreliable partner in many areas," Bessent said in an interview with CNN's "State of the Union." Between the lines: Bessent made clear the biggest problem was getting out from under Chinese control of the rare earth minerals critical for hundreds of high-tech products."
"'It's China versus the world. They put it on the whole world, and the whole world pushed back,' Bessent said of Chinese export controls. 'We're going to go at warp speed over the next one to two years, and we're going to get out from under this sword the Chinese have over us - and they have it over the whole world,' Bessent said."
The United States and China announced a framework trade deal that includes one-year truces on export controls for rare earth minerals and some chip technology, and a Chinese commitment to purchase U.S. soybeans. Chinese leader Xi Jinping cautioned other nations against aligning with the United States amid the dispute. Financial and policy leaders emphasize de-risking rather than decoupling because China has been an unreliable partner in many areas. The core problem centers on Chinese control of rare earth minerals used in hundreds of high-tech products. Policymakers plan rapid efforts over one to two years to diversify supplies. Previous truces collapsed within months, often triggering renewed escalation.
Read at Axios
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