- U.S. Secretary Scott Bessent emphasized the global trade imbalances, highlighting that over 100 countries support efforts to rebalance the system.
- He criticized China’s reliance on manufacturing exports, calling it “an unsustainable model that is not only harming China but the entire world.”
- Bessent reinforced the need for broader economic reforms, arguing that excessive reliance on U.S. demand weakens global stability.
U.S. Secretary Scott Bessent addressed the Institute of International Finance today, delivering remarks that could signal a pivotal shift in U.S. economic policy. His speech touched on the evolving dynamics of global trade, emphasizing the importance of fostering cooperation between major economies to ensure stability and growth.
Bessent’s comments come amid President Trump’s recent announcement of potential tariff reductions on Chinese imports, which could lower rates from 145% to as little as 50-65%. This move has sparked speculation about a resolution in the ongoing trade war between the U.S. and China, with both nations hinting at a willingness to negotiate.
Bessent Speaks
U.S. Secretary Scott Bessent addressed the Institute of International Finance today, emphasizing the global consequences of President Trump’s tariff policies. In response to Trump’s announcement, “more than 100 countries have approached us; wanting to help rebalance global trade. These countries have responded openly and positively to the President’s actions to create a more open and balanced international system,” Bessent revealed.
He singled out China as particularly in need of economic restructuring, citing its growing reliance on manufacturing exports over domestic consumption. “China’s economic system, with growth driven by manufacturing exports, will continue to create even more serious imbalances with its trading partners if the status quo is allowed to continue,” he stated, warning that the country’s current approach “is not only harming China but the entire world.”
Bessent reinforced the U.S. commitment to global economic rebalancing, suggesting that China should shift its focus away from export overcapacity and toward strengthening domestic demand. “Such a shift would help with global rebalancing that the world desperately needs,” he said, adding that trade alone is not the only factor at play in global instability. He criticized some nations for policies that “encourage excess savings which hold back private sector growth,” while others “keep wages artificially depressed which also suppresses growth.” These practices, he argued, contribute to an unhealthy dependence on U.S. demand for global economic stability.
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