Bankers on edge, a gilded cash room and US blaming China - my week with global finance elite

October 19, 2025

The article describes an escalating trade war between the United States and China, highlighted during a Treasury Department briefing amid a government shutdown. Treasury Secretary Scott Bessent and Trade Ambassador Jamieson Greer accused China of "economic coercion" following its new export restrictions on rare earth minerals critical to high-tech manufacturing and AI development. Meanwhile, the Trump administration has imposed significant tariffs globally while the U.S. economy remains temporarily insulated by a tech-fueled wealth boom that some fear may be an unsustainable bubble.

Who is affected

Global manufacturers of high-tech goods, electric cars, and military hardware
U.S. companies and consumers facing potential price increases from tariffs
European and African economies receiving redirected Chinese exports
Investors in AI and technology sectors vulnerable to market corrections
Smaller central banks stockpiling gold as a safe haven
Finance ministers and officials attending the IMF annual meetings
Air traffic controllers working without pay during the government shutdown

What action is being taken

China is implementing new export controls on rare earth elements, EV battery technology, and industrial materials
The Trump administration is maintaining and expanding significant tariffs on global imports
The U.S. is attempting to build international alliances against China's trade practices
The UK and other countries are working with partners like Canada to develop alternative supply chains for critical minerals
Companies exporting to the U.S. are currently absorbing tariff costs in their profit margins
Smaller central banks are increasingly investing in gold as a safe haven asset
The U.S. is reopening mines and refining facilities to reduce dependency on Chinese materials

Why it matters

China's control of rare earth minerals gives it significant leverage over the global technology supply chain
The U.S. tariff system is the toughest the world has seen since 1933 but effects have been temporarily muted
Current economic stability may be artificially sustained by potentially unsustainable tech valuations worth $180 billion per year
The trade war disruptions could eventually impact artificial intelligence systems and high-tech products globally
The situation creates a climate of uncertainty where even allies are confused about U.S. trade policies
These tensions represent destabilizing "centrifugal forces" in the global economy
The current situation resembles the 1990s tech boom but with added complications of supply chain disruptions and escalating tariffs

What's next

No explicit next steps stated in the article

Read full article from source: BBC