Treasury Secretary Bessent to discuss China with allies this week

Investing.com -- Treasury Secretary Scott Bessent said Monday he will be speaking with allies about China this week, as tensions escalate over trade restrictions.

During an interview on Fox Business, Bessent characterized the situation as "China versus world" and indicated he has already been in contact with allies regarding China’s export controls.

"We expect support from Europe and India versus China," Bessent said, adding that "we won’t let China’s export restrictions go on."

The Treasury Secretary expressed optimism about de-escalating tensions with China and said he hopes to meet with his Chinese counterpart. "Lines of communication have been opened," Bessent noted, suggesting that "China is open to discussion on this."

Bessent’s comments come after President Donald Trump announced Friday that the United States will impose an additional 100% tariff on Chinese imports starting November 1, 2025. Trump described this as a response to China’s "extraordinarily aggressive position on Trade" regarding rare earth elements and other materials.

The Treasury Secretary indicated the U.S. has options if diplomatic efforts fail. "If not, we have substantial levers we can pull," Bessent warned, adding that "we could move more aggressively than China has" and that "everything’s on the table."

On Sunday, the Trump administration signaled openness to a deal with China while warning that Beijing’s export controls remain a major barrier to talks. Vice President JD Vance called on China to "choose the path of reason" in the escalating trade dispute.

Trump later suggested a potential resolution, writing on Truth Social: "Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!"

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