US Finance Minister Scott Besant has said that the export restrictions imposed by China on rare minerals have proved to be a ‘mistake’ for it. These steps made the world realize how Beijing can use these important resources to exert pressure.

Controversy increases over export control
In October, China had implemented new rules on the export of technologies related to rare metals. This thing is considered very important for defence, automobile, consumer electronics and many industries. Due to these sanctions, tension had increased in trade negotiations between America and China. However, following President Xi Jinping and Donald Trump’s meeting on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea this week, China announced it would suspend some export restrictions for a year.

‘China has made the world realize the danger’- Besant
Speaking to the Financial Times, Besant said, ‘China has alerted everyone about the danger. He has really made a mistake. According to him, ‘Showing weapons is one thing, but firing bullets in the air is another matter.’

movement in the global market
Control over rare metals had increased volatility in markets around the world and affected supply chains. This area is considered a major means for China to create international influence. Besant says that now it will not be easy for China to take a similar step again, because many countries including America have ‘prepared options’ against it. He said, ‘China’s leadership team was a little nervous about the global reaction.’

China’s President took America to task
Xi Jinping took on Trump on Friday at the ongoing APEC summit in South Korea. He told leaders of the Asia-Pacific region that his country would help defend global free trade at the annual economic regional forum, which US President Donald Trump ignored.