The U.S. is considering restrictions on software-related exports to China in retaliation for Beijing’s broad rare-earth export controls as both nations gear up for the next round of talks. According to Reuters, U.S. Treasury Secretary Scott Bessent affirmed the possibility, stating that ‘everything is on the table.’
“If these export controls, whether it’s software, engines, or other things happen, it will likely be in coordination with our G-7 allies,” Bessent added.

Earlier this month, President Donald Trump announced that starting next month, the U.S. would enforce export controls on all critical software to China, prohibiting global shipments of goods containing U.S. software to the country. He also declared an additional 100% tariff on Chinese exports in response to China’s restrictions on the export of rare earth minerals.

Bessent’s remarks come just before the much-anticipated discussions with Chinese Vice Premier He Lifeng in Malaysia later this week, which could pave the way for a possible meeting between Trump and Chinese President Xi Jinping in South Korea at the end of the month.

A spokesperson for China’s Ministry of Commerce said on Thursday that a delegation would hold trade negotiations with U.S. officials in Malaysia from Friday to Monday.
On Wednesday, President Trump stated that he has a long meeting planned with President Xi during his upcoming visit to South Korea, where he hopes to finalize agreements on soybean trade, nuclear and arms.

Tensions between Washington and Beijing have escalated in recent weeks, with both sides exchanging new threats ahead of upcoming talks. In September, the U.S. Commerce Department significantly broadened its export controls to prevent China from obtaining advanced semiconductor chips. In response, China imposed extensive new restrictions on rare-earth exports, added more American companies to its blacklist, and initiated an antitrust probe into U.S. tech giant Qualcomm.

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