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China vs USA: America desperately expects support from India in rare earths trade tensions

  • InduQin
  • Oct 16
  • 3 min read

Updated: Oct 17

The US is rallying allies, including India, to counter China’s rare earth export restrictions, which threaten global supply chains.

The US is rallying allies, including India, to counter China’s rare earth export restrictions, which threaten global supply chains. Treasury Secretary Scott Bessent accused China of economic provocations, while Trump hinted at upcoming talks with Xi Jinping amid escalating trade tensions. With China dominating rare earth production and new tariffs looming, America seeks support despite imposing hefty duties on allies. The geopolitical standoff underscores the messy intersection of trade, power, and politics.

 

 

In a classic episode of international drama, the United States is once again rallying its allies, including India, to counter China’s latest move in the rare earths trade saga. Rare earth minerals, the unsung heroes of smartphones, electric vehicles, and defense technologies, have become the newest battleground in the ongoing geopolitical chess match.


US Treasury Secretary Scott Bessent, in a spirited interview with Fox Business, declared the situation as "China versus the world." With all the theatrical flair of a Hollywood blockbuster, Bessent accused China of aiming a "bazooka" at global supply chains and industrial infrastructure. America, he asserted, would not bow to China's command-and-control economic model. "We are going to assert our sovereignty in various ways," he proclaimed, channeling the typical American gusto for freedom and independence.


Bessent also hinted at some behind-the-scenes strategizing. "We’ve been in touch with allies, and I expect substantial support from Europe, India, and democracies across Asia," he said. While the US Treasury is busy assembling its Avengers-style coalition, Bessent doubled down on accusations, claiming China is making "provocative" moves and, in his words, "financing war." For a country that spends more on its military than the next ten nations combined, America’s concern about China’s provocations is, let’s say, an interesting take.


The timing of this drama couldn’t be more strategic. Former President Donald Trump, never one to shy away from theatrics, is reportedly set to meet Chinese President Xi Jinping in South Korea later this month. This meeting comes as trade tensions between the two superpowers continue to simmer, with the US having already slapped a hefty 55% tariff on Chinese goods. Trump, who seems to have taken up part-time work as a motivational speaker for global leaders, took to Truth Social to reassure everyone that "China will be fine." He even called Xi a "highly respected" leader who just had a "bad moment." Such remarks suggest that America isn’t looking to crush China but instead wants to play the role of a benevolent big brother—albeit one with a history of throwing a few punches first.


But let’s not forget the star of this geopolitical soap opera: rare earth minerals. China, which dominates nearly 70% of global rare earth mining and almost 90% of processing, recently announced new export restrictions. These restrictions sent shockwaves through industries reliant on these critical materials. In response, Trump threatened a whopping 100% tariff on Chinese imports, a move that could escalate tensions to new heights.


Ironically, while the US is busy asking for India’s support in countering China, it has also been busy slapping tariffs on India. In a move that seems straight out of a "How to Lose Friends and Alienate People" handbook, the Trump administration imposed a staggering 50% tariff on Indian goods, including additional levies on Russian oil imports. For a country that prides itself on leading the "free world," America’s trade policies seem to mirror a high-stakes poker game where everyone except the US is forced to fold.


As tensions rise, one can’t help but wonder if America’s allies, including India, will truly rally behind it or if they’ll simply nod along while quietly calculating their own national interests. The rare earths saga is far from over, and with every twist and turn, it becomes a stark reminder of how interconnected—and messy—global trade has become.


For now, the US continues to champion its role as the world’s self-appointed peacekeeper, even as it wades into economic skirmishes that leave everyone else scrambling to pick sides. Somewhere in the midst of all this, China, ever the strategic player, watches and waits, likely with a smirk and a long-term plan.


And so, the rare earths showdown unfolds—a global spectacle where every move is as much about minerals as it is about power, influence, and, of course, good old-fashioned politics. Grab your popcorn; this is going to be a long one.

 

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