• Treasury Secretary Scott Bessent states China has not moved beyond public statements in trade negotiations.
  • US maintains firm stance, seeking de-escalation and economic rebalancing from China.
  • Trade tensions persist with high tariffs on both sides, as Bessent calls China's economic model "unsustainable."

US-China Trade Stalemate Continues

Treasury Secretary Scott Bessent has reiterated that China has yet to offer any concessions beyond what they’ve publicly stated in ongoing trade negotiations. Speaking recently, Bessent emphasized that the ball remains in China’s court to initiate de-escalation, despite mutual interest in reducing tensions.

The current standoff includes steep tariffs—145% on Chinese imports by the US and 125% on US goods by China—which Bessent described as unsustainable for Beijing. He pointed to China’s slowing GDP and estimated job losses of 5-10 million as signs of strain, contrasting it with the US economy’s resilience.

A Call for Structural Reforms

Bessent didn’t mince words about China’s economic model, calling it "the most unbalanced in history" and built on export overcapacity. His remarks at the Institute of International Finance underscored the need for China to pivot toward domestic consumption, a shift he argued would benefit both nations.

While leaving room for a potential "big deal," Bessent outlined clear prerequisites: China must first de-escalate tariffs and demonstrate commitment to rebalancing its economy. Market watchers note this stance aligns with the Trump administration’s broader departure from traditional US trade policy, which once prioritized global market integration.

What’s Next?

With no active negotiations reported, attention turns to whether China will make the first move. Private sector analysts suggest Beijing’s options may be narrowing as economic pressures mount. Meanwhile, the White House appears content to wait, with Bessent’s comments reinforcing a strategy of economic patience.

The Treasury Department did not immediately respond to requests for further comment.