U.S.-China Trade Discussions Stalled, Prompting Need for Leadership Engagement, Says Bessent
In a recent interview with Fox News, Treasury Secretary Scott Bessent highlighted that U.S.-China trade negotiations have hit a standstill and that direct dialogue between the two nations’ leaders is essential to move forward. “I believe that we will be having more talks with them in the next few weeks,” Bessent stated, hinting at the possibility of a call between President Donald Trump and President Xi Jinping in the near future.
The dynamic between the world’s two largest economies escalated sharply last month, but Bessent played a crucial role in facilitating a breakthrough agreement in Switzerland on May 12. This agreement temporarily rolled back recently implemented tariff increases exceeding 100% for a period of 90 days, set to last until mid-August. Additionally, diplomatic channels between the U.S. and China have recently been operational, with officials exchanging calls late last week.
Despite this progress, tensions remain, particularly with the U.S. advancing technology restrictions against China, which has drawn strong criticism from Beijing. On the other hand, China has not substantially relaxed its constraints on rare earth materials, contradicting expectations from Washington.
Bessent emphasized the importance of leadership involvement in resolving these complex negotiations. “I think that given the magnitude of the talks, given the complexity, that this is going to require both leaders to weigh in with each other,” he remarked, expressing confidence in the strong relationship between Trump and Xi. He suggested that the Chinese administration would be willing to engage further once Trump articulates his positions clearly.
The last conversation between Trump and Xi occurred in January, just before Trump was inaugurated for his second term. While Trump has expressed interest in speaking with Xi again, analysts speculate that China may only consent to the call if there is assurance from the U.S. regarding the absence of unforeseen developments during their discussion.