WASHINGTON D.C. – US Treasury Secretary Scott Bessent declared Friday that Beijing's recent attempt to weaponize its dominance over rare earth minerals was a "massive strategic mistake" that has ultimately backfired, forcing the US and its allies to accelerate plans for total supply chain independence within the next 12 to 24 months.
In a candid interview with the Financial Times on October 31, Bessent stated that China's actions had served as a "final wake-up call" for the West.
"China has awakened everyone to the dangers of this dependency. They made a huge mistake," Bessent said. "It’s one thing to put the gun on the table but they actually squeezed the trigger and fired a shot in the air."
A Shock, A Standoff, and A Sudden Reversal
The crisis ignited in early October when Beijing imposed new, sweeping export controls on rare earth-related technologies and materials. The move targeted the 17 strategic minerals essential for manufacturing everything from semiconductor chips and EV batteries to Javelin missiles and F-35 fighter jets.
The action sent shockwaves through global markets and brought high-level US-China trade negotiations to a standstill.
However, in a sudden reversal following the high-stakes meeting between President Donald Trump and President Xi Jinping on the sidelines of the APEC Summit in South Korea, China abruptly announced a one-year suspension of the export controls.
Bessent characterized the reversal as a sign of weakness, not goodwill.
"I think the Chinese leadership panicked at the ferocious global reaction to their export controls," Bessent asserted. "They did not anticipate the consequences."
While Washington and Beijing reached a temporary deal to stabilize trade, Bessent was clear that the truce has a firm expiration date. "We have a temporary equilibrium—but it's a 12-month equilibrium. China cannot hold this leverage any longer because the United States has a counters-strategy."
The 24-Month Plan to End Dependency
According to the Treasury Secretary, China's ability to use rare earths as a coercive tool will be "effectively neutralized" within the next 12 to 24 months.
This accelerated timeline is driven by a multi-pronged diversification strategy championed by the Trump administration:
Domestic Expansion: Aggressively expanding domestic mining at sites like the Mountain Pass mine in California and, more critically, fast-tracking domestic refining and processing capabilities—the key bottleneck China currently controls.
"Friend-Shoring" with Allies: Solidifying supply chains with close allies like Australia and Canada, which have vast, untapped rare earth deposits.
New Strategic Partnerships: Actively co-investing in mining and processing ventures in emerging partners, particularly in Southeast Asia, to create a robust, resilient, and "China-free" supply chain.
EU Confirms Global Truce
The impact of China's reversal was felt globally. Shortly after the APEC announcement, European Union Trade Commissioner Maros Sefcovic confirmed that the suspension of export controls also applies to the entire EU.
Writing on the X platform (formerly Twitter), Sefcovic stated: "China has confirmed the suspension of export controls also applies to the EU. Both sides reaffirmed their commitment to dialogue to improve trade and export control mechanisms."
This unified front from the US and EU underscored the scale of the global pushback that Beijing had faced.
Bessent concluded the interview with a stark warning that defined the administration's policy.
"China’s mistake made it clear to the US and our allies that no nation should allow its critical supply chains to be in the hands of an adversary," he said.
"Under President Trump, America will control its own destiny—we will not allow any nation to hold a chokepoint on our supply chain."