Bessent Calls for Balanced US-China Trade Ahead of Trump-Xi Meeting

Bessent Calls for Balanced US-China Trade Ahead of Trump-Xi Meeting

U.S. Treasury Secretary Scott Bessent arrives for a meeting with Chinese Vice Premier He Lifeng at JPMorgan Chase headquarters in New York City on Sept. 20, 2026. Eduardo Munoz Alvarez/Getty Images

Treasury Secretary Scott Bessent on Nov. 10 called for a more balanced U.S.-China economic relationship, telling attendees of an event in New York that the United States must produce more of what it consumes while China must consume more of what it produces.

Speaking at a gala for the National Committee on U.S.–China Relations, Bessent described the bilateral bond as one of this century’s most consequential, and said ties between U.S. President Donald Trump and Chinese leader Xi Jinping amount to a genuine friendship.

“Let me state firmly and unequivocally tonight that as we work toward a more balanced relationship, our objective is to de-risk, not to decouple,” Bessent said in prepared remarks.

“The American economy has grown too dependent on foreign supply, while China’s has become increasingly reliant on foreign demand. Working together, we can strengthen both of our economies without perpetuating the imbalances between them.”

He added that the approach “does not reflect hostility” and aims to restore “a spirit of reciprocity.”

He also noted that the countries’ leaders have engaged face to face with unusual frequency this year.

The Board of Trade, a new bilateral forum the two governments set up to manage tariff and farm issues, produced an agreement to ease tariffs on $30 billion worth of nonsensitive goods flowing in each direction, Bessent said. It also set up a working group to tackle barriers in agricultural trade. China has already pledged to buy at least 25 million metric tons of U.S. soybeans and 10 million metric tons of coal over the next two years.

Chinese Ambassador Xie Feng echoed the reciprocity theme, saying that “China and the United States stand to gain from cooperation and lose from confrontation.” He said “the great rejuvenation of the Chinese nation and making America great again can complement each other.”

The remarks came as a fragile trade truce nears a January expiration. Trump is expected to travel next week to Shenzhen for his third meeting with Xi this year.

Days earlier, Bessent and U.S. Trade Representative Jamieson Greer held a video conference with Chinese Vice Premier He Lifeng. Bessent stressed that China must “fully and immediately implement its commitments” from the Busan deal, particularly on rare-earth supplies and U.S. farm purchases.

“Continued progress depends on concrete results,” Bessent said, adding that Washington “will closely assess China’s implementation of the arrangement.”

Under the October 2025 Busan framework, China agreed to buy more U.S. soybeans, curb fentanyl precursors, and roll back export controls on rare earths and critical minerals. The one-year truce was later extended through Jan. 10.

In September, teams led by Bessent and He agreed in New York to “operationalize” a Board of Trade and an AI dialogue.

“We just had a very, very successful engagement with the Chinese on trade and AI,” Bessent told reporters at the time.

Greer noted that the Board of Trade was examining “nonsensitive” goods for continued trade even if tensions rise.

Bessent has repeatedly warned that China’s large trade surplus is unsustainable. Ahead of a G20 finance meeting in August, he said, “The world cannot have a China with a $1.2 trillion trade surplus.”

He has described the U.S. goal as de-risking rather than decoupling, while pressing Beijing to meet its outstanding commitments.

The Associated Press contributed to this report.

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