U.S. warns of economic decoupling over China’s export restrictions

U.S. officials cautioned that new Chinese export restrictions on rare earth minerals and critical semiconductors could accelerate global economic decoupling. David Bessent, a senior policy adviser, said Western nations may respond with reciprocal technology controls. The warning follows reports of tightened export licensing in China, affecting chipmaking materials and battery components. Investors fear renewed supply-chain disruptions, while Asian markets traded cautiously. Economists noted that further escalation could reshape trade flows and drive commodity volatility across global manufacturing hubs.