(Yahoo! Finance) - Both Treasury Secretary Bessent and US Trade Representative Jamieson Greer slammed China in a joint press conference on Wednesday, saying the country violated an earlier accord with the US by asserting export controls on rare earths.
Greer called China's move a "supply chain power grab" and an "exercise on economic coercion on the global economy," warning that the movement of everything from household appliances to cars could be affected around the world.
Bessent threatened decoupling from the world's second-largest economy if China continues this behavior, though he said that's not what the US wants and that he would be speaking with allies about steps that can be taken.
Bessent also noted that he expects to fly to South Korea early ahead of the APEC summit later this month to meet with his counterpart and that, as of Tuesday night, President Trump is still expected to meet with Chinese President Xi at APEC in a few weeks.
It's possible that the current 90-day pause on tariffs between the US and China could be extended, he added, but that it won't be negotiated before leaders meet in South Korea.
"Make no mistake, this is China versus the world," Bessent said. "They have put these unacceptable export controls on the entire world ... and we nor our allies will not be commanded nor controlled ... and we won't let a group of bureaucrats in Beijing manage the global supply chain."
Bessent also talked about the current legal challenge before the Supreme Court regarding the president's tariffs, stating that there are numerous other laws the US can utilize if the nation's highest court rules that the president's use of the International Emergency Economic Powers Act wasn't legal.
He underscored that the US now has trade deals in effect and doesn't think countries will back out of those deals.
Bessent additionally noted the US government bought Argentine pesos this morning and said the US is working on a $20 billion credit facility that could buy Argentina's government bonds.
It would be adjacent to the Treasury's swap line of private banks and sovereign wealth funds that would be more aimed at the debt market. This would bring assistance to Argentina up to $40 billion in total, including the $20 billion already allocated to currency swap lines.
"We've actually been working on it for weeks," Bessent told reporters. "It is a private-sector solution to Argentina's upcoming debt payments. Many banks are interested in it, and many sovereign funds have expressed interest in being part of it."
Bessent is also in the midst of interviewing candidates to become the next chair of the Federal Reserve, a shortlist that now includes five people.
He did not offer any updates about a narrowing of that list, but he did say reform of quantitative easing — a reference to the Fed's buying of bonds to push down borrowing costs — is an important consideration as he considers Fed chair choices.
By Jennifer Schonberger - Senior Reporter
