Bessent Says US Aircraft Engines, Chemicals Are Bargaining Chips in China Trade Talks

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Sep 25, 2025 - 09:57 Updated: Sep 25, 2025 - 00:05
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Bessent Says US Aircraft Engines, Chemicals Are Bargaining Chips in China Trade Talks

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Treasury Secretary Scott Bessent said American aircraft engines and parts, along with certain chemicals, could provide leverage for the United States in trade talks with China, where rare earth supplies remain a central issue.

Bessent made the remarks in a Sept. 24 interview on Fox Business Network’s “Mornings with Maria” program, as Washington and Beijing spar over rare earths—critical to defense and technology—amid ongoing tariff disputes.

The Treasury secretary stated that flows of Chinese rare earths to the United States had resumed after a significant pullback and that Washington maintains its own points of leverage to mitigate the risk of further interruptions.

“We’re not without levers on our side,” Bessent said, adding that “we have plenty of products that they depend on us for,” citing aircraft engines, parts, chemicals, plastics, and silicon ingredients.

Rare earth metals, a group of 17 elements used in electric cars, wind turbines, and military hardware, have become one of Beijing’s most potent trade weapons. China accounts for 61 percent of global extraction and 92 percent of refining, according to the International Energy Agency.

In April, Beijing expanded its export control list to cover seven rare earths, along with magnets made from three of them, rattling global supply chains in defense, electronics, and the automotive sector.

The move followed President Donald Trump’s steep tariffs on Chinese goods amid efforts to rebalance what his administration says are unfair trade relations, along with his push to curb fentanyl flows into the United States.

Rare earth exports have since swung sharply. After plunging to fewer than 50 metric tons in May, rare earth shipments to the United States rebounded above 600 tons in June and July before dipping to 590 tons in August.
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In July, Washington and Beijing agreed to a framework to facilitate rare earth shipments, pausing most heavy tariffs for 90 days. Yet disruptions persist. A Sept. 17 report from the European Union Chamber of Commerce in China said small- and mid-sized firms still face “significant” supply problems and warned no “long-term, sustainable solution” has emerged.
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Trump, who spoke by phone with Chinese leader Xi Jinping on Sept. 19, has also pointed to U.S. leverage in aircraft parts. Standing beside South Korean President Lee Jae-Myung at the White House on Aug. 25, Trump said China has 200 Boeing jets that would be grounded without American spares.

“I sent them all of the parts so their planes can fly,” Trump told reporters. “I could have held them back. I didn’t do that because of the relationship I have. And they’re flying.”

Bessent echoed that strategy, adding that another lever that the United States could use in talks with China is the market for initial public offerings of companies. He said that he and other Trump officials had already held four rounds of talks with Chinese counterparts and expected more in October and November, ahead of a Nov. 10 tariff deadline.

“Look, we approach them with mutual respect. They’re the second-biggest economy in the world, but the United States had made it clear we have priorities, we have interests, and we’re going to defend them,” Bessent said.

Washington is working to secure supplies of strategic goods, including rare earths and semiconductors, the Treasury secretary added. The White House has launched a push to rebuild the domestic critical minerals industry, with federal investments, minimum price agreements, and investigations into foreign-made supplies.

“This is the Manhattan Project moment for rare earths,” said Joshua Ballard, CEO of USA Rare Earth, which plans to begin making rare-earth magnets next year.

The Trump administration has fast-tracked permitting for critical mineral mining projects and pledged hundreds of millions of dollars to U.S. producers as it seeks to break China’s grip on supply.

Bessent warned that semiconductors pose a separate vulnerability.

“The single greatest point of failure for the world economy is that 99 percent of the high-performance chips are produced in Taiwan,” Bessent said.

“They do a great job, they have a wonderful ecosystem, but in terms of risk management, I don’t know whether it’s 30, 40, 50 percent of our needs, we have got to bring back to the U.S. or our allies, whether it’s Japan or the Middle East. And we’re working on that every day.”

Reuters and The Associated Press contributed to this report.
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