Trump is considering restricting US software exports and shipments of items made with US software to China

The U.S. is considering restrictions on software-related exports to China, in response to Beijing’s broad export controls on rare earths, as both countries gear up for a pivotal round of negotiations.

When asked by CNBC’s Eamon Javers whether Washington was mulling limits on items that use American software and ship to China, Scott Bessent, U.S. Treasury Secretary, affirmed that “everything is on the table.”

He added: “If these export controls — whether software, engines or other items — are implemented, it will likely be done in coordination with our G-7 allies.”

Earlier this month, Donald Trump announced that the U.S. would impose export controls on “any and all critical software” destined for China beginning next month, by banning global shipments of goods that include U.S. software to the country. He also announced an additional 100 % tariff on Chinese exports in retaliation for Beijing’s restrictions on its rare-earth materials.

Bessent’s remarks come ahead of his long-awaited talks with Chinese Vice Premier He Lifeng in Malaysia later this week, a meeting that could pave the way for a summit between President 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 led by He will meet with U.S. counterparts in Malaysia from Friday through Monday. The statement said the two sides will discuss key issues in the bilateral relationship “based on the important consensus reached during the phone calls between the two heads of state this year.”