Bessent warns of China’s control over silver

U.S. Treasury Secretary Scott Bessent convened a full-scale international meeting of finance ministers on Monday to address a worsening crisis in the supply of critical minerals and China’s growing dominance over strategic materials. The talks come as China refines up to 87% of the world’s rare earths and silver prices are hitting record highs. Bessent brought together finance ministers from 11 countries, representatives of the European Commission, and U.S. trade officials to begin coordinating a response. According to Bessent, the goal is to repair and diversify supply chains before China further tightens its control.

Countries Representing 60% of Global Demand—Yet Supply Still Dominated by China Participants included: Jim Chalmers (Australia)François-Philippe Champagne (Canada)Valdis Dombrovskis (European Union)Roland Lescure (France)Lars Klingbeil (Germany)Ashwini Vaishnaw (India)Giancarlo Giorgetti (Italy)Satsuki Katayama (Japan)Edgar Amador Zamora (Mexico)Yun-Cheol Koo (South Korea)Rachel Reeves (United Kingdom) Jamieson Greer, John Jovanovic, and Jay Horine also joined the meeting. Together, these countries and blocs account for roughly 60% of global demand for the minerals in question, yet China continues to dominate the supply side.

“Supply Chains Are Over-Concentrated and Fragile” Bessent opened the talks with a blunt assessment: “Supply chains are too concentrated. They are fragile. They are easily disrupted. We have to fix this—and fast.” The U.S. delegation outlined current investments and upcoming initiatives aimed at building alternative supply routes, with a focus on: rare earthscobaltlithiumgraphitesilver Bessent stressed that the objective is not a complete decoupling from China, but rather reducing systemic risks where they matter most.

Europe Warns Against Inaction; France to Elevate Issue at the G7 German Finance Minister Lars Klingbeil warned that Europe cannot afford to remain passive: “For me, it’s crucial that Europe does not sit on its hands. Complaints and self-pity won’t help—we have to act.” He called for faster action and new EU-level funding, pointing to Germany’s raw-materials fund as a possible model. Klingbeil also confirmed that France will make rare earths a central topic during its upcoming G7 presidency.

Chinese Export Restrictions Add Urgency The urgency of the talks was reinforced by a recent move in which China banned exports of dual-use minerals intended for Japan’s military just last week. The decision affected countries that rely on these materials for: energy systemsdefense capabilitiessemiconductor manufacturing Bessent warned: “We cannot be caught off guard again—especially not with minerals this critical.”

Financing Alternatives and Mobilizing Private Capital Ministers also heard briefings from Greer, Jovanovic, and Horine on financial instruments designed to accelerate alternative supply development and mobilize private-sector participation in rebuilding global supply chains.

Silver’s Record Rally Forces CME to Change Margin Rules Beyond the policy discussions, markets have already reacted. CME Group announced changes to how margin requirements are calculated for silver, gold, platinum, and palladium. Under the new framework, margins will be tied to a percentage of notional value, rather than fixed dollar amounts. The changes take effect Tuesday evening. The move follows: a 20% year-to-date surge in silver pricesrecord highs in both silver and gold CME said the adjustment followed a “routine review of market volatility to ensure adequate collateral coverage.”

Market Reaction: Silver Rises, Precious Metals Mixed In the latest trading session: Spot silver climbed another 1%Gold held steady at $4,596.03 per ouncePlatinum fell 0.6%Palladium declined 0.9%The Dollar Spot Index rose 0.1% CME reminded traders that daily margining exists to cover potential losses, signaling that more cash will be required to maintain positions as volatility increases.

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