U.S. Treasury: “We are considering controlling exports of software and aircraft engines to China”
U.S. Treasury Secretary Scott Bessent confirmed on October 22 (local time) that the U.S. is considering controlling exports of software and aircraft engines to China if China does not agree to policy changes in upcoming trade talks.
“I make sure that everything is on the table and that we are negotiating in good faith and with respect for each other,” Bessent said at a White House press briefing.
President Donald Trump first raised the possibility of restricting China’s access to critical software after China announced broad restrictions on exports of products containing rare earths mined or processed in China. With China accounting for more than 90% of rare earth processing, China’s actions are expected to cause significant disruption to many industries.
Bessent said that if China does not lift its recently announced restrictions on rare earth exports, not only the United States but its allies around the world will retaliate.
“China has imposed these rare earth export controls not only on the United States but around the world,” Bessent said. “If the United States were to impose export controls on software, engines or other items, it would likely be done in coordination with our G7 allies.”
American companies hold exclusive rights to a wide range of software. China recognizes this strategic leverage the United States has and has urged its own technology industry to develop alternatives.
The United States previously restricted sales of business management software and design and manufacturing software to Russia following Russia’s invasion of Ukraine.
Trump also raised the possibility of restricting China’s access to aircraft engines, a market in which American companies dominate.
China is currently subject to a 55% tariff on goods exported to the United States, and unless it changes its rare earth policy, the tariff will increase to 155% from November 1.
“Tariffs are much stronger than rare earths,” Trump told reporters at a White House briefing on October 22.
He said he had received calls from several officials regarding rare earth supplies.
President Trump expressed optimism that the two countries could reach a “fantastic” agreement. He said he expected China to do its part in the fentanyl crisis by pledging to buy soybeans and curb exports of fentanyl precursors, and that any tariff cuts would be contingent on those commitments.
“China will buy soybeans. I want them to stop fentanyl. I don’t want them to play the rare earths game with us,” he told reporters on October 19.
Trump said China’s economy would not be able to sustain high tariffs.
“They are paying an incredible amount of money to the United States because of high tariffs,” he said. “They probably can’t pay that much, and we don’t care. We can lower the tariffs, but they have to do something for us.”
“I want to help China… but they have to give us something too.”
*Reporter Han Kang-deok contributed to the translation and arrangement of this article.
Copyright © Epoch Times, unauthorized reproduction and redistribution prohibited.
