Beijing plans to tighten export controls on rare earths. On the 31st, US Treasury Secretary Bassett said that China has miscalculated and made a serious mistake, and that the United States can ensure alternative sources of rare earth supplies within 2 years.
Bassett believes that China cannot continue to use key minerals as a tool of coercion, because the US has enough means to offset the impact. China's actions have alerted everyone, and China's influence on the US in the rare earth field is estimated to last at most 12 to 24 months.
Bassett made these remarks in an interview with the UK's "Financial Times" during the Asia-Pacific Economic Cooperation (APEC) meeting held in Gyeongju, South Korea.
US President Trump held a bilateral meeting with Chinese President Xi Jinping in Busan, South Korea, on the 30th. Bassett noted that, assuming all conditions remain unchanged, the US and China have achieved a certain "balance", and that they can operate in this "balanced" state for the next 12 months.
Before the Trump-Xi talks, signs of escalation re-emerged in the US-China trade war, threatening global supply chains: the US announced a new round of technology-related export controls, and China responded with large-scale rare earth export controls. Bassett believes the international market's strong response to China's new export control measures has made Chinese leaders feel somewhat uneasy.
However, Bassett said that when Trump and Xi Jinping sat down face-to-face for talks, it was obvious that they respected each other, and Xi clearly wished to find areas where he could cooperate with Trump.
Bassett said that both Trump and Xi understood the importance of achieving "stability" between the US and China, as it concerns the economies of both countries and the world as a whole.
● When Will Trump Visit Beijing?
Regarding the Trump-Xi meeting, Bassett also shared a relatively light-hearted anecdote with the "Financial Times".
Bassett said that at the time, the US and Chinese sides were discussing Trump's visit to Beijing. Trump said, "I believe you want me to visit early next year," to which Xi Jinping responded, "It's very cold in January and February, why don't we postpone it to April."
The "Financial Times" reported that China has agreed to suspend new rare earth export control measures for a year, make large purchases of US soybeans, and allow the US side to control the short video app TikTok. Regarding TikTok, Bassett said the related business deal is expected to be finalized soon. (News source: CNA)