Wed, 23 Apr 2025

Wed, 23 Apr 2025 Opportunity for big US-China trade deal, says Bessent

The comments from the US Treasury Secretary come as the trade war between the world's two biggest economies has escalated.
US Treasury Secretary Scott Bessent believes there's an opportunity for a significant trade deal between the US and China. He emphasized that China needs to change its economy, becoming less dependent on manufacturing exports. Bessent stated that both countries need rebalancing, with a shift towards domestic economies rather than relying heavily on consumption. Bessent's comments come as tensions between the two nations have escalated in recent weeks due to tariffs imposed by US President Donald Trump and retaliatory measures taken by China. The secretary described the current situation as "not a joke" but expressed optimism that trade relations can improve. Trump has also indicated his willingness to de-escalate the trade war, suggesting that import taxes would be reduced but not eliminated entirely. Bessent's remarks were seen as positive by investors, who responded with a surge in stocks on Wednesday. The US Treasury Secretary also called for the IMF and World Bank to refocus on their core missions of economic stability and development, criticizing their involvement in "vanity projects" such as climate change and social issues. Bessent emphasized that these institutions should prioritize their original mandates and use US influence to push them towards their intended goals.
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