Bessent: There’s a chance for “big things” with China
EJ Antoni, senior fellow at Unleash Prosperity, will discuss trade negotiations with China at Varney & Co.
Treasury Secretary Scott Bescent on Wednesday said “big things” with China could potentially lower tariffs if Beijing is willing to take steps to restore the economy.
Bessent gave a keynote speech at the International Institute for Finance (IIF) and attended a question-and-answer session stating that the US and China could trade with tariffs if they wanted to adjust their economy to more consumption and reduce their dependence on manufacturing.
“There’s a great opportunity here,” Bescent said. “The US is looking for a rebalance to more manufacturing industries. That identity will consume less.”
“I think they use the term dual circulation when China has a low dependence on export-driven manufacturing growth and rebalance on the domestic economy.
Treasury Secretary Scott Bessent will make a statement at the International Institute for Financial Research (IIF) Global Outlook forum on Side Jobs at the IMF and World Bank’s 2025 Spring Conference held in Washington, DC on April 23, 2025. (Reuters/Elizabeth Franz/Reuters)
In his keynote address, Bescent outlined why the Trump administration believes it needs to readjust China’s economic system.
“Recent data shows that the Chinese economy is leaning further away from consumption towards manufacturing. China’s economic system, which has driven growth by manufacturing exports, will continue to create even more serious imbalances with its trading partners if the status quo is allowed to continue,” he said.
“China’s current economic model is based on exporting ways to get out of economic trouble. It’s an unsustainable model that’s not only hurting China, but also hurting the world as a whole,” explained Bessent. “China needs to change. The country knows it needs to change. Everyone knows it needs to change. And we need rebalance too, so we want to help change it.”
Bescent said the US has the opportunity to do “big things” with China in trade. (Victor J. Blue/Bloomberg via Getty Images)
The Treasury Secretary said that if China focuses more on domestic consumption and rotates its economy, it will help the international economic system adapt to a more stable equilibrium.
“China can start by moving the economy away from overexport capacity and supporting its own consumer and domestic demand,” explained Bescent. “These changes will help the global rebalance the world desperately needs.”
This is a developing story. Please check for updates.