Australian Treasurer Jim Chalmers rejects top US officials’ calls to ‘decouple’ from China

Treasurer Jim Chalmers has rejected top US officials’ calls to “decouple” from Beijing, saying it was important to get the balance right between Australia’s biggest trading partner in China and closest ally in the United States.

US Treasury Secretary Scott Bessent had issued a stern warning to China after Beijing tightened export rules for critical minerals last week and called for international partners to “decouple” from the Asian superpower.

Dr Chalmers told reporters in Washington on Friday he believed Australia could walk a tightrope between the important international relationships when it came to the “absolutely golden opportunity” critical minerals presented the country.

“I think it’s well understood here in Washington DC that Australia’s put a lot of effort into stabilising that key economic relationship with China,” he said.

“I think it’s also well understood here that we see this economic relationship as one of mutual benefit in the United States.

“It’s possible for us to engage on both of those fronts. That’s in Australia’s national economic interest.”

“There is so much that we do together and so much more that we can do together, including in areas like critical minerals.

Beijing mandated that exporters of products which contain more than 0.1 per cent of minerals mined or processed in China must seek approval from the Chinese Government before trading it. It also banned their use in foreign military technology.

With critical minerals needed for smartphones, cars, household appliances and defence equipment — US trade representative Jamieson Greer claimed Beijing’s controls were part of “a broader plan by China to control the world’s supply chains”.

“If China wants to be an unreliable partner to the world, then the world will have to decouple,” Mr Bessent had declared.

“The world does not want to decouple. We want to de-risk. But signals like this are signs of decoupling, which we don’t believe China wants. I don’t believe that China wants to be an agent of chaos.”

Dr Chalmers pledged he would discuss Australia’s abundance of critical minerals with the director of the National Economic Council Kevin Hassett while in Washington.

“When it comes to critical minerals, Australia has so much to offer the world,” Dr Chalmers said.

“This will be an important part of the discussions that I have with Kevin Hassett tonight.

“We know that American companies desperately need critical minerals, and Australia is very well placed to service that need.

“We will engage with our partners to make sure that we can be a very reliable supplier to meet the critical minerals needs.”

Dr Chalmers also said he had no doubts it would be raised by Prime Minister Anthony Albanese during his first formal bilateral with US President Donald Trump when the pair sit down in the White House on October 20.

“Obviously, we don’t pre-empt the specific nature of the discussions that Prime Minister Albanese will have with President Trump next week,” he said.

“But clearly, the Americans have an interest in Australian critical minerals

“We had a number of discussions with the Americans in recent months.

“We will make sure that we make the most of this absolutely golden opportunity for Australia.”