In a startling accusation that could reshape global economic dynamics, U.S. Treasury Secretary Scott Bessent has boldly claimed that China is deliberately attempting to drag the rest of the world into its economic turmoil. But here's where it gets controversial: Bessent suggests that China’s recent export controls on critical resources like rare earths and minerals are not just protective measures, but a calculated strategy to undermine global growth. Speaking to the Financial Times on the eve of U.S.-China talks in Madrid, Spain, on September 15, 2025, Bessent didn’t hold back, stating, 'China is trying to pull everyone else down with them.'
This move comes at a particularly tense moment, just ahead of a high-stakes meeting between President Donald Trump and China’s Xi Jinping. And this is the part most people miss: China’s October 9 announcement specifically targeted the export of rare earth materials for military use—a first-of-its-kind restriction. These materials are essential for U.S. defense systems, including the F-35 warplane, Tomahawk missiles, and smart bombs. Trump’s response? A 100% tariff on Chinese goods starting November 1, coupled with threats to cancel the meeting with Xi. Markets have reacted sharply, with Wall Street averages plummeting on Tuesday.
Bessent’s critique doesn’t stop there. He argues that China’s actions are counterproductive, especially as the country grapples with a recession. 'They’re trying to export their way out of it, but all they’re doing is worsening their global standing,' he told the FT. This raises a thought-provoking question: Is China’s strategy a desperate attempt to regain control, or a risky move that could backfire spectacularly?
Controversy alert: While some view China’s export controls as a legitimate defense of its economic interests, others see it as a dangerous escalation in the ongoing trade war. What do you think? Is China justified in its actions, or is it playing a losing game? Let’s debate this in the comments—your perspective could shed new light on this complex issue.
