Treasury Secretary Scott Bessent said Wednesday that the Trump administration is planning to introduce “price floors” in multiple industries as a strategy to counteract market manipulation by China.
At the CNBC Invest in America Forum in Washington, D.C., Bessent said the administration’s decision to take stakes in private companies is intended to address global market manipulation, particularly from China.
He said the administration has identified seven “strategic” markets for greater government involvement.
“When you are facing a nonmarket economy like China, then you have to exercise industrial policy,” Bessent said.
He said China has driven rare earth mineral companies out of business by sharply reducing its own prices.
“We’re going to set price floors and the forward buying to make sure that this doesn’t happen again, and we’re going to do it across a range of industries,” he said.
China’s Ministry of Commerce announced this month that it will permit the export of rare earth minerals to foreign militaries, with new rules requiring foreign entities to obtain “export licenses.”
President Donald Trump responded by threatening the country with 100% tariffs, calling the move an “extraordinarily aggressive position” and a “moral disgrace.”
“Don’t worry about China, it will all be fine!” Trump wrote on Truth Social following his warning.
“Highly respected President Xi [Jinping] just had a bad moment. He doesn’t want depression for his country, and neither do I.
“The U.S.A. wants to help China, not hurt it!!!” he wrote.
Bessent told CNBC that the new restrictions could prompt the U.S. government to expand its investments in specific markets.
“I wouldn’t be surprised. When we get an announcement like this week with China on the rare earths, you realize we have to be self-sufficient or we have to be sufficient with our allies,” he said.
Recent U.S.-China tensions center on Beijing’s decision to impose new export controls on rare earth elements and other critical minerals. The Chinese government now requires export licenses for these materials, including restrictions on shipments to foreign militaries.
Washington has denounced the move as coercive and damaging to global supply chains, leading to Trump’s new higher tariff strategy.
The U.S. has also strengthened its domestic industrial policies to reduce reliance on Chinese supply chains. Those measures include tighter export controls on advanced technologies, closer scrutiny of foreign investment, and expanded federal support for domestic production of critical minerals and components.
China maintains that its licensing system protects national security and economic stability. Both governments signal interest in continued dialogue, but positions remain far apart.
The upcoming meeting between Trump and Xi at the Asia-Pacific Economic Cooperation summit is viewed as the next major test of whether relations stabilize or harden further.
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