Unleash Prosperity, a principal colleague EJ Antoni, discusses President Donald Trumps Trade negotiations with China on Varney & Co.
The Treasury Secretary, Scott Bessent, said on Wednesday that there was an opportunity for a “big affair” in China to reduce prices if Beijing was willing to take measures to rebalance his economy.
Bessent presented opening remarks at the Institute of International Finance (IIF) and participated in a question-answer session in which he declared that the United States and China could conclude an agreement on prices if China is willing to adjust its economy to greater consumption and less rescue with regard to manufacturing exports.
“There is an opportunity for a big problem here,” said Bessent. “The United States seeks to rebalance more manufacturing. The identity of this would be less consumption.”
“If China is serious about less dependence on the growth of the manufacturing led by exports and a rebalancing towards an interior economy – I think they are using the term double circulation, well, at the moment, it is really a singular circulation. And if they want a rebalancing, let’s do it together. It is an incredible opportunity,” said Bessent.
The secretary of the Treasury, Scott Bessent, pointed out the Forum of World Prospects of the Institute of International Finance (IIF) on the sidelines of the IMF and annual annual spring banking meetings in Washington, DC, on April 23, 2025. (Reuters / Elizabeth Frantz / Reuters)
During his opening speech, Bessent explained why the Trump administration believes that the Chinese economic system must be rebalanced.
“Recent data show that the Chinese economy losing even further from consumption towards manufacturing.
“The current economic model of China is built on the export of its economic problems. It is an unsustainable model which harmed not only in China, but to the whole world,” said Bessent. “China must change. The country knows it must change. Everyone knows it must change, and we want to help it change, because we also need to rebalance.”
Bessent said there was an opportunity for the United States to make a “big deal” with China on trade. (Victor J. Blue / Bloomberg via Getty Images / Getty Images)
The secretary of the Treasury said that if China pivots its economy to focus more on domestic consumption, it would help the international economic system to adapt to a more stable balance.
“China can start by keeping its economy away from the overcapacity of exports and towards the support of its own consumers and domestic demand,” said Bessent. “Such a change would help rebalance the world that the world is desperately needed.”
It is a story in development. Please check the updates.
