Key officials from the Group of Seven (G7) bloc are expected to convene soon and issue a group response to China’s ramped-up export restrictions, in turn impacting the supply of rare earths across the globe. US officials – Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer – joined other world leaders in blasting the Asian countries severe rule pertaining to export.
US officials Bessent, Greer on China’s rare earth restrictions – G7 discussion pending
During a press conference addressed global trade ties on Wednesday (US time), both American official hit out at China’s “global supply-chain power grab,” noting that the US and its allies would not stand for the imposed restrictions. Amid already strained relations with China, Greer and Bessent maintained that they had no intentions of escalating the friction between them.
The US Treasury Secretary also insisted during a CNBC-hosted forum in Washington that America would be reaching beyond the G7 bloc (United States, Canada, Germany, France, Italy, the United Kingdom and Japan) to tackle the rare earth issue head-on with China.
“We are going to be speaking with our European allies, with Australia, with Canada, with India and the Asian democracies,” he said. “We are going to have a fulsome, group response to this, because bureaucrats in China cannot manage the supply chain or the manufacturing process for the rest of the world.”
Global finance ministers insist on G7 meeting over new China export rules
In addition to the US officials urging China not to implement the rules that would send shockwaves through global supply chains, Germany Finance Minister Lars Klingbeil told reporters that a G7 gathering was slated for the day. He also warned against any stringent measures being used to stop China over fears of them potentially backfiring on the global partners.
Prior to the latest comments emerging on the matter, the European Union trade chief Maroš Šefčovič called out China’s “dramatic” move as a “critical concern.” On top of that, he shared that he has already spoken to US Commerce Secretary Howard Lutnick about the issue. Following their interaction, they agreed upon having a “G7 video call pretty soon.”
Japanese Finance Minister Katsunobu Kato also joined the conversation this week, expressing his country’s deep concerns about China’s measures. “I called for G7 nations to unite and respond,” he told reporters in Washington on Wednesday. Much like the EU official, he insisted on global partners moving forward cautiously. “If our actions were to trigger a cycle of retaliation, that could have adverse effects on the global economy and markets,” he added.