Washington, DC [US], October 23 (ANI): The United States is considering possible countermeasures to China's newly announced export controls on rare earth elements, Treasury Secretary Scott Bessent said in an interview with Fox News ahead of his trip to Malaysia for the ASEAN summit.

Bessant said that the Trump administration, while hopeful of progress in the upcoming Trump-Xi meeting in South Korea, will not accept what he described as Beijing's 'unworkable and unacceptable' licensing regime.

'These wide-ranging export controls on rare earths exist all over the world. This is China versus the globe. It's not just the US and I can tell you this licensing regime that have proposed is unworkable and unacceptable,' he said. 'If we are not able to negotiate a pause or relief on this regime, we are contemplating how the US and its allies would respond.'

The Treasury Secretary, who will meet his Chinese counterpart, Vice Premier He Lifeng, during the ASEAN summit weekend in Kuala Lumpur, said he aims to resolve the issue before Presidents Donald Trump and Xi Jinping meet next week. 'I'm hoping we can get this ironed out this weekend so that the leaders can enter their talks on a more positive note,' he said.

Bessant described the Trump-Xi meeting as an opportunity to rebuild economic cooperation. 'President Trump has great regard for President Xi; they are in frequent contact,' he said. 'It would be a shame to waste their first in-person meeting during Trump's second term trying to get past problems rather than moving toward a more constructive dialogue.'

He added that 'all options are on the table' and noted that discussions so far have been extensive. 'We are going to have two days of very full talks. This will be our fifth meeting after Geneva, London, Stockholm, and Madridwe are now moving to Asia,' he said. Bessant also confirmed that he will accompany President Trump to Japan for a meeting with the new Japanese Prime Minister, Sanae Takaichi, whom he described as 'a protege of former Japanese Prime Minister Shinzo Abe, with whom President Trump was very close.'

China's move to impose sweeping export controls on rare earths critical minerals used in electric vehicles, smartphones, and advanced military systems has triggered concern across global supply chains. The measures, announced on October 8, introduce a complex licensing regime for exporters that industry analysts warn could disrupt production of essential technologies, as per Fox News.

Rare earths are vital to both consumer and defense sectors, powering items such as EV batteries, radars, and cruise missiles. China remains the world's dominant producer, accounting for nearly 70 per cent of global output, according to the US Geological Survey (USGS). In 2024, China produced about 270,000 tons of rare earths and held an estimated 44 million tons in reserves.By comparison, the United States mined 45,000 tons last year with reserves of 1.9 million tons, while Australia produced 13,000 tons and had reserves of 5.7 million tons.

The growing tensions follow the US-Australia agreement signed last week by President Donald Trump and Australian Prime Minister Anthony Albanese to jointly invest $1 billion each in rare earth and critical mineral projects. The deal includes cutting mining permit timelines and setting a price floor for critical minerals to strengthen non-Chinese supply chains.

'The global industrial and supply chains came into shape as a result of market choices,' Chinese Embassy spokesperson Liu Pengyu said in a statement to FOX Business, defending Beijing's new policy. (ANI)