U.S. mulls software-linked export curbs on China: ‘Everything is on the table’

U.S. mulls software-linked export curbs on China: ‘Everything is on the table’

MADRID, SPAIN – SEPTEMBER 15: U.S. Treasury Secretary Scott Bessent addresses the media as he leaves a meeting, Sept. 15, 2025, in Madrid, Spain.

Gustavo Valiente | Europa Press | Getty Images

The U.S. is weighing curbs on software-related exports to China, in response to Beijing’s sweeping rare-earth export controls, as both sides prepare for a critical round of negotiations.

Answering a question from CNBC’s Eamon Javers on whether Washington was considering limiting exports of products using American software to China, as reported by Reuters, U.S. Treasury Secretary Scott Bessent confirmed, saying 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.

President Donald Trump earlier this month said that the U.S. would impose export controls on “any and all critical software” to China beginning next month by barring global shipments of goods containing U.S. software to the country. Trump had also announced an extra 100% tariff on Chinese exports in retaliation to curbs Beijing announced on the exports of its rare earth minerals.

Bessent’s statement comes ahead of his highly anticipated talks with Chinese Vice Premier He Lifeng in Malaysia later this week, which would set the stage for a potential meeting between Trump and Chinese President Xi Jinping in South Korea at the month’s end.

A spokesperson for China’s ministry of commerce said in a statement Thursday that a delegation led by He will hold trade talks with their U.S. counterparts in Malaysia from Friday to Monday. “The two sides will discuss key issues in the bilateral relations, based on the important consensus reached during the phone calls between the two heads of state this year,” the statement in Mandarin read, translated by CNBC.

“How the meeting [between Bessent and He] goes will have a significant impact on the chance and vibe of Xi-Trump meeting later in Korea,” said Neo Wang, China strategist at Evercore ISI. While the top leaders’ meeting may not deliver a major deal, it will help keep the minister-level negotiations on track and ultimately help solve specific issues, Wang added.

Trump said Wednesday that he has a “long” meeting scheduled with Xi during the upcoming trip to South Korea, where he expected to reach a deal with the Chinese leader over soybean purchases and limits on nuclear weapons.

“We can work out a lot of our questions and our doubts and our tremendous assets together. So we look forward to that. I think something will work out. We have a very good relationship, but that’ll be a big one,” the president told reporters at the White House.

Beijing has held back from confirming its plans for the meeting, with a foreign ministry spokesperson saying at a regular briefing Tuesday that “the U.S. and Chinese top leaders have maintained close communication, which is crucial

High-stakes meeting

Tensions between Washington and Beijing have intensified in recent weeks, as both sides have issued new threats ahead of negotiations.

In September, the U.S. Commerce Department unveiled a dramatic expansion of its export controls as part of its efforts to block Beijing from accessing cutting-edge chips.

China has hit back with sweeping new curbs on rare-earth exports, placed more U.S. companies on a blacklist and launched an antitrust investigation into tech major Qualcomm.

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