US Treasury Secretary's Attempt to Drag Allies into Decoupling with China Fails

After China legally and comprehensively upgraded its rare earth export measures, the US showed its true colors. US Treasury Secretary Bensont became furious, blaming China for "confronting the entire world," claiming that this move would force the US and other countries to "decouple" from China.

At a regular press conference held by the Chinese Foreign Ministry on October 16, spokesperson Lin Jian responded to the US's incompetence and rage, stating, "The relevant authorities in China and we have repeatedly explained our position on the rare earth export control policy. The export control measures taken by China are in line with international practices, aiming to better maintain world peace and regional stability."

Bensont also urged American allies to take joint actions against China. However, decoupling from China? Australia was the first to disagree.

According to reports from Australian media outlets such as the Australian Broadcasting Corporation (ABC) and the Australian Financial Review on the 17th, Jim Chalmers, the Australian Treasurer, who was visiting Washington, D.C., stated on Friday that Australia may help address weaknesses in the global supply chain of critical minerals. However, he explicitly opposed the Trump administration's recent call for decoupling from China.

Chalmers emphasized that it is very important for Australia to strike a balance between its largest trading partner, China, and its closest ally, the United States.

He added that Australia will continue to cooperate with various trade partners based on its national interests, stating, "For Australia, maximizing benefits comes from expanding trade, not setting up trade barriers."

When asked whether he was worried about being forced to take sides between two superpowers, Chalmers said he believed Washington was aware of Australia's efforts to stabilize economic relations with China.

"I also believe they understand that this economic relationship brings mutual benefits to both the US and Australia," he continued, "and it is also good news for Australian workers, businesses, and investors."

Chalmers further stated that, given the "absolute golden opportunities" that critical minerals bring to Australia, he believes Australia can skillfully navigate the "tightrope" between these two important international relationships.

"We can certainly cooperate simultaneously in both areas (with China and the US), which aligns with Australia's national economic interests," he said. "We already have a lot of cooperation with the US, and there are more areas to expand in the future. Critical minerals are one of them."

According to the Australian Financial Review, Chalmers also revealed that, in addition to meetings with U.S. officials and World Bank and International Monetary Fund (IMF) officials, he will go to New York the next day to meet with heads of asset management institutions to promote Australia as a global export destination.

"Currently, countries around the world have urgent needs, and Australia happens to have a lot of resources they need. Whether it's critical minerals or the skills of our own talent, the resilience of our economy. Despite the complex and ever-changing international environment and the challenges that follow, our advantages are very prominent," he said.

Before meeting with Kevin Hassett, the Director of the White House National Economic Council, Chalmers revealed that he would discuss Australia's abundant critical mineral resources with the US side.

"When it comes to critical minerals, Australia can provide a lot to the world," he said. "We know that American companies urgently need critical minerals, and Australia is fully capable of meeting this demand. We will work with our partners to ensure that we can be a reliable supplier of critical minerals for Australia, the US, and other global markets."

Chalmers also said that he has "no doubt" that Prime Minister Albanese will mention this issue during his first formal bilateral meeting with President Trump at the White House on October 20.

"Of course, we won't reveal the specific content of the Prime Minister's meeting with the President of the United States next week in advance, but it is clear that the US has an interest in Australia's critical minerals," he said.

He added, "In recent months, we have had multiple discussions with the US. We will ensure that Australia fully grasps this absolute golden opportunity."

Bloomberg reported that Chalmers' remarks were intended to emphasize that Australia has the capability to become a key component in the US's push for diversification of rare earth supply chains and to reduce dependence on China.

The report stated that rare earths are crucial for various fields, including semiconductors and military technology. Australia has the fourth-largest rare earth deposit in the world and a long mining history, which enhances its strength as a viable alternative to China's rare earth supply.

Original: www.toutiao.com/article/1846281373628551/

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