Beijing announced new controls in October on exports of technologies related to rare earths, crucial for manufacturing in defence, automobile, consumer electronics and other industries.

The restrictions were a major sticking point in trade negotiations between Beijing and Washington, and China said it would halt them after Presidents Xi Jinping and Donald Trump met this week.

In an interview with the Financial Times (FT), Bessent said: “China has alerted everyone to the danger. They’ve made a real mistake”.

“It’s one thing to put the gun on the table. It’s another thing to fire shots in the air,” Bessent said.

Xi and Trump met on the sidelines of the Asia-Pacific Economic Cooperation summit in South Korea this week.

Following the talks, China said it would suspend certain export restrictions, including on rare-earth materials, for one year.

The controls had rattled markets and snarled supply chains in the strategic sector, a key source of international leverage for Beijing.

Bessent told the FT that China would not be able to pull the same move again, saying: “We have offsetting measures”.

“I think the Chinese leadership were slightly alarmed by the global backlash to their export controls,” he said.