Treasury Sec. Bessent: Stock market decline won't deter U.S. from taking strong action against China

US-China Trade Relations & Geopolitics - Market is more concerned about US-China trade tensions than government shutdown [1] - China is attempting to justify its actions regarding rare earth mineral restrictions by claiming the US provoked them, but this is not accurate [2] - The US views China's actions as a broader issue affecting the world, not just a bilateral problem, and is seeking a coordinated response with allies [3] - The US does not want to damage China's economy, nor does it believe China wants to damage the US economy, but the US will assert its sovereignty [5] - Rare earth export controls are seen as a sign of decoupling, but the US does not want to decouple from China [6] - High-level communication between the US and China is ongoing, and a meeting between President Trump and Xi Jinping is still planned [9][10] - The level of trust between the two leaders has prevented further escalation of the situation [11] Strategic Reshoring & Supply Chain - COVID-19 served as a test run for bringing back strategic industries [7] - 10-20% of the current investment boom is aimed at reshoring 5-7 strategic industries [7] - Strategic industries include pharmaceuticals, semiconductors, shipbuilding, steel, and rare earths [8] - The US possesses leverage over China through semiconductors, aircraft engines, and various minerals [6][7]