The US is responding to China's Rare Earth Elements Policies.

The US Responds to China's Rare Earth Element Moves

US Treasury Secretary Scott Bessent emphasized the need for a coordinated response to China's control moves over rare earth elements in statements made at the CNBC Forum in Washington.

US Commercial Strategy Against China

Bessent noted that trade with China plays a strategic role, stating that the US has many levers in this context. He said, "Chinese bureaucrats are struggling to manage the supply chain and they need critical elements like semiconductors, aircraft engines, and rare earth elements."

International Cooperation and Reactions

Bessent announced that a coordinated response will be given against China along with Australia, Canada, India, and some European countries. He expressed that these countries will reevaluate their current trade relations with China.

Economic Impacts and Artificial Intelligence

Speaking on the current effects of investments in artificial intelligence, Bessent pointed out that the contributions of these investments to production are expected to become visible in the first quarter of 2026. He also stated that the government's closure has led to a significant economic loss of around $15 billion daily.

Fed Chair Candidates and Future Plans

Bessent announced he has narrowed down the process of selecting a new Fed chair to 5 out of 11 candidates, as Fed Chair Jerome Powell’s term will end in May 2026. Furthermore, he highlighted that the US is close to completing negotiations with South Korea and has made positive progress with India.