Bessent Warns: China Is Slamming the Brakes — The Global Economy on the Edge of Crisis

U.S. Treasury Secretary Scott Bessent has accused China of deliberately undermining the global economy by restricting exports of rare earth elements and critical minerals — a move he says exposes “a desperate attempt by a struggling nation to drag others down with it.” Bessent’s warning comes just weeks before the highly anticipated meeting between Donald Trump and Xi Jlnping at the Asia-Pacific summit in South Korea — a meeting that could shape the future of global trade.

Beijing Using the Economy as a Weapon Bessent claims that China is weaponizing export bans to pressure other nations. As the world’s largest supplier of rare earth elements — vital for electronics, EVs, and green tech — Beijing’s restrictions threaten to destabilize global supply chains. “This isn’t a show of strength,” Bessent said. “It’s a confession of weakness. Instead of fixing its problems at home, China is exporting its crisis to the rest of the world.” Analysts say China’s economy is under serious strain: growth has stalled, the property sector is collapsing, and business confidence is fading. Rather than addressing these issues, Beijing is using export controls to gain leverage — but this only fuels mistrust and accelerates the global shift away from Chinese manufacturing.

Washington Prepares to Strike Back The U.S. is preparing countermeasures to weaken China’s tech sector. One proposal would require American companies exporting software to China to obtain special licenses — a move that could cripple Chinese AI startups and chipmakers. Sources close to the White House say Beijing’s timing — just weeks before the summit — was meant to demonstrate that it could “choke” key global industries. However, the move has backfired. “You don’t draft export restrictions like this in two weeks,” said one U.S. official. “This plan was months in the making — and it’s born out of weakness, not strength.”

Trump: “If China Wants to Sabotage the World, We’ll Respond” President Donald Trump responded bluntly, accusing Beijing of trying to sabotage the global economy. He warned that the U.S. “will not sit idly by.” Within hours of his remarks, Chinese officials reportedly reached out to Washington to resume talks — a sign that public pressure had forced a shift in tone.

Inside China’s Internal Struggles According to Bessent, China’s leadership is divided and consumed by internal power struggles, leading to erratic decision-making. Competing factions within the Communist Party are fighting for control of economic policy, leaving Beijing unable to send clear signals to the world. “China isn’t confident — it’s nervous. And that’s dangerous,” Bessent warned. “Our goal is to keep communication open — but we’re also preparing to defend our interests.”

The World on the Edge of a Trade Storm Bessent’s remarks come as the global economy faces rising inflation, volatile energy prices, and growing market uncertainty. If tensions between Washington and Beijing continue to escalate, the world could enter a new phase of trade warfare — one driven not by tariffs, but by control over resources and technology.

#china , #globaleconomy , #TRUMP , #Geopolitics , #worldnews

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