US Treasury Secretary Scott Bessent, after rable rousing for months, has now said that Washington expects support from India and Europe as it confronts the fallout from China’s sweeping new export restrictions on rare earth elements. The Chinese threat threatens key sectors of the US defence industry.
Last week, China’s Ministry of Commerce unveiled extensive new rules that will block the supply of rare earths to companies with links to foreign militaries. Given China’s overwhelming dominance in the sector, the move is expected to disrupt America’s ability to manufacture advanced defence platforms, including F-35 fighter jets, submarines and Tomahawk long-range missiles.
“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,” Bessent said in an interview with Fox News.
What Are Rare Earths?
Rare earths refer to a group of 17 metallic elements that are vital to a wide range of commercial and defence technologies. They are used in products such as mobile phones, electric vehicles and flat-screen displays, as well as in lasers, radar, and advanced guidance systems.
According to the American Geosciences Institute, approximately 97% of the world’s rare earth production is concentrated in China. This dominance has given Beijing a powerful geopolitical instrument, which it has previously used as leverage in negotiations with Washington.
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US–China Trade Tensions
China’s export controls have sharply intensified tensions with the United States. In response, US President Donald Trump has threatened to impose an additional 100% tariff on Chinese exports.
India and the United States have increased cooperation on critical minerals and rare earths to lessen their reliance on Chinese supply chains. In 2023, India joined the US-led Minerals Security Partnership, aimed at diversifying sources of critical minerals and rare earth elements.
During Prime Minister Narendra Modi’s visit to Washington in February, both countries announced plans to accelerate investment and research in this strategic sector.
“To this end, the leaders announced the launch of the Strategic Mineral Recovery initiative, a new US-India program to recover and process critical minerals (including lithium, cobalt, and rare earths) from heavy industries like aluminium, coal mining and oil and gas,” stated the US–India joint communiqué issued after the Trump–Modi meeting earlier this year.
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
