The fragile trade truce between the United States and China appears to be unraveling as top US officials accuse Beijing of undermining agreements reached earlier this year. In a highly orchestrated press conference, US Trade Representative Jamieson Greer and Treasury Secretary Scott Bessent condemned China’s recent moves to tighten export controls on rare earths, lithium batteries, and graphite, labeling them as “economic coercion” and a “global supply chain power grab.” Bessent warned, “If China wants to be an unreliable partner to the world, then the world will have to decouple.” However, he left room for negotiation, expressing optimism that the situation could be de-escalated through dialogue. China, which processes approximately 90% of the world’s rare earths and magnets, announced last week that foreign companies would need government approval to export products containing even minimal amounts of these critical materials. The US responded with threats of imposing a 100% tariff on Chinese imports starting next month, alongside potential export controls on critical software. The escalating tensions have raised fears of a return to an all-out trade war, jeopardizing the fragile truce established in May. Both nations have also introduced new port fees on each other’s ships, further straining relations. Bessent emphasized the need for the US and its allies to collaborate, calling China’s actions “unacceptable” and “highly provocative.” He asserted, “This is China versus the world. We and our allies will neither be commanded nor controlled.” Despite the rhetoric, both sides seem open to discussions, offering a glimmer of hope for resolution.