Washington D.C. – Amid rising tensions over China's new export controls on rare earth minerals, the U.S. is anticipating robust support from India and Europe to counter Beijing's dominance in the sector, according to U.S. Treasury Secretary Scott Bessent. Bessent's remarks come in the wake of China's Ministry of Commerce announcing sweeping restrictions that could potentially block the supply of rare earths to companies with ties to foreign militaries.
These restrictions, which took effect in October 2025, require licenses for the export of technologies used in rare earth mining and processing, as well as for the manufacturing of magnets. Crucially, any foreign firm that wants to supply rare earths produced in China or processed with Chinese technologies outside China will also need to obtain a license. The new rules also specify that overseas defense users would not be granted licenses, and applications related to advanced semiconductors would only be approved on a case-by-case basis.
Given that China controls approximately 70% of the world's rare-earth mining and almost all of its separation, processing, and magnet manufacturing, these export controls are expected to significantly impact America's ability to manufacture key defense platforms, including F-35 fighter jets, advanced submarines, and long-range Tomahawk missiles. Rare earths, a group of 17 metallic elements, are critical in a wide array of commercial and defense applications, from smartphones and electric vehicles to lasers and radar systems. Roughly 97% of global rare earth production is concentrated in China, making it a potent geopolitical tool for Beijing.
In an interview with Fox News, Bessent stated, "We have already been in touch with the allies. We will be meeting with them this week and, you know, I expect that we will get substantial global support from the Europeans, from the Indians, from the democracies in Asia". He characterized China's actions as "China versus the world," accusing Beijing of pointing "a bazooka at the supply chain and industrial base of the entire free world".
The export controls have already heightened tensions between the U.S. and China, with President Trump threatening an additional 100% tariff on Chinese exports. Bessent, however, stressed that Washington aims to "de-risk, not decouple" from China, emphasizing efforts to strengthen domestic manufacturing in critical sectors.
The U.S. has already imposed twelve countermeasures on China, affecting sectors ranging from natural resources to aviation components. Despite imposing a 50% tariff on Indian goods, the U.S. appears confident in securing India's support, especially given the increasing cooperation between the two nations in critical minerals and rare earths. In 2023, India joined the U.S.-led Minerals Security Partnership to diversify critical mineral and rare earth supply chains.
China has defended its export control measures, asserting they are legitimate actions to safeguard global peace and warning the U.S. of "resolute measures" if the tariff threat is carried out. The commerce ministry stated that relevant countries and regions had been notified through bilateral export control dialogue mechanisms prior to the measures being announced.
Experts suggest that the new restrictions signal a strategic tightening of control over dual-use items and know-how, with potentially far-reaching implications for global supply chains and technology-intensive industries. The regulations will help China by restricting exports of mining and smelting technologies that will make it "significantly harder and costlier to build an independently controlled supply chain overseas".
