Time to de -escalate? Bessent: China will strive for agreement

The Minister of Finance (Treasury) USA Scott Bessent expressed his conviction in a Thursday interview for Fox Business Network that China would strive for an agreement on customs. He emphasized that in the first place “de -escalation” of commercial tensions is needed, and the negotiations will be “multi -stage”.

Bessent emphasized that China must reduce the high duties, which he called the “balance of the embargo”. Only after they are limited “will we start focusing on a larger trade agreement” – he added.

The minister pointed out that the Chinese business model is based on the sale of “cheap goods” to the USA and that “they sell us about 5 times more than we do”. He warned that as a result of the ongoing trade war “their factories are closing”, and further escalation may be “devastating” for the Chinese economy, if orders for Christmas products that should now affect Chinese factories will not be placed.

He also drew attention to the “significant slowdown” of China and the estimates of loss “from 5 to 10 million jobs” in China.

The politician admitted that the current high duties, i.e. 145 percent for imports from China and 125 percent For goods imported to China, they are “insurmountable”.

One of the key elements of conversations, which the schedule has not been disclosed, is to verify the purchase contracts concluded as part of the first phase of the commercial agreement with China of January 2020. Bessent wants to make sure that China is honoring these obligations, including the purchases of agricultural products from which Beijing has been withdrawn so far.

The minister said that Trump's administration strives for “fair trade” with China, and added that this is “the most unbalanced economy in the history of the world.” In his opinion, China must go towards “greater consumption”, while the US, thanks to Trump's actions, focuses on production economy. “If we could balance ourselves together, it would be a big deal,” he added.

In addition to the issue of customs and orders, the minister also mentioned other disputes in trade relations with China, such as theft of intellectual property, cyber attacks and other “dishonest trade barriers”. He noted that all these issues can be taken into account in negotiations.

Bessent confirmed that he has already met with delegations of other Asian countries, including representatives of Japan and South Korea, as well as with the Indonesian Minister of Finance. He also suggested that “de -escalation” in relations with China may occur faster than concluding contracts with other countries. (PAP)

KRP/ Kar/