Treasury Secretary Scott Bessent called for a more balanced trading relationship between the United States and China on Tuesday. His remarks came just days after President Donald Trump indicated he expects to meet with Chinese President Xi Jinping later this month.
Speaking at a gala hosted by the National Committee on U.S.-China Relations, Bessent acknowledged that the trade imbalance between the two nations has long been a source of friction. He emphasized that the primary objective of the current administration is to de-risk the economic relationship, not to completely decouple the two economies.
Recent data from the Census Bureau shows that America’s trade deficit with China reached a 20-year low last year. U.S. firms imported $202.7 billion more in goods from China than Chinese businesses imported from the United States. While the U.S. has maintained a trade deficit with China for decades, the gap has grown significantly since the turn of the century.
Bessent argued that the American economy has become too dependent on foreign supply, while the Chinese economy has grown increasingly reliant on foreign demand. He suggested that the United States must produce more of what it consumes, and China must consume more of what it produces. He noted that working together in this manner could strengthen both economies without perpetuating existing imbalances.
President Trump said on Sunday that he expects to meet with both Xi and Russian President Vladimir Putin next week at the Asia-Pacific Economic Cooperation summit in Shenzhen, China. The president told reporters in Florida that he anticipates holding a meeting with both leaders.
According to the president, discussions with his Chinese and Russian counterparts will focus on denuclearization. The three nations hold more than 80 percent of the world’s available nuclear warheads, according to data from the Federation of American Scientists.
The diplomatic push follows a meeting in September where Trump hosted Xi. Before that summit, officials from both countries agreed to extend a trade truce until January 10, 2027. The agreement, originally reached last year, led to lower U.S. tariffs on Chinese exports and a suspension of Chinese export controls on rare earth metals.
In September, officials also agreed to reduce tariffs on $30 billion worth of products. Bessent stated on Tuesday that the administration intends to advance a fair and reciprocal relationship with China. Two months remain before the countries must either extend the current truce or reach a larger trade deal.
The Treasury Secretary added that after decades of imbalance, the U.S. is working to restore a spirit of reciprocity for the benefit of both peoples. He reiterated that the goal is to create a sustainable economic partnership that addresses long-standing structural issues.
