US Treasury Secretary Accuses China of Deliberately Weakening Global Economy

US Treasury Secretary Scott Bessent accused China today of intentionally attempting to damage the global economy, escalating tensions between the two nations amid ongoing trade disputes.

Bessent criticized Beijing’s recent imposition of export controls on rare earths, a move that drew criticism from President Trump, suggesting the action would ultimately be self-defeating. “This is a sign of how weak their economy is, and they want to pull everybody else down with them,” Bessent told the Financial Times. “Maybe there is some Leninist business model where hurting your customers is a good idea, but they are the largest supplier to the world. If they want to slow down the global economy, they will be hurt the most.” This accusation comes as rare earth minerals are vital components in many modern technologies, potentially disrupting supply chains worldwide.

The comments have contributed to a downturn in markets across the Asia-Pacific region, with China’s CSI 300 index down 0.6%, Hong Kong’s Hang Seng losing 1.2%, and Japan’s Nikkei dropping by 2.1%. Cryptocurrencies are also experiencing losses, with Bitcoin down 2.7% and ether shedding 5%. The escalating rhetoric threatens to overshadow the annual meetings of the International Monetary Fund and the World Bank Group currently underway in Washington DC. Further complicating matters, the US and China have begun implementing tit-for-tat port fees, adding another layer to the trade conflict, as reported by Reuters.

Despite the heightened tensions, Bessent indicated that a planned meeting between President Trump and Chinese leader Xi Jinping in South Korea later this month remains on track. Speaking to Fox Business, Bessent stated, “The 100% tariff does not have to happen… President Trump said that the tariffs would not go into effect until November 1. He will be meeting with Party Chair Xi in Korea. I believe that meeting will still be on.”