• Treasury Secretary Scott Bessent reports a visiting Chinese delegation is open to working with U.S. authorities on anti-money laundering efforts.
  • The discussions reflect a broader policy shift under Bessent toward greater Treasury oversight and coordinated international financial regulation.
  • The engagement occurs amidst a U.S. push to safeguard critical industries and reduce supply-chain dependence on China.

Treasury Secretary Scott Bessent, who assumed office in January, indicated that a high-level Chinese delegation has shown a willingness to collaborate with the United States on strengthening money-laundering controls. The discussions, which also included technical progress on anti-money-laundering frameworks, represent a notable point of engagement in otherwise tense U.S.-China financial relations.

According to people familiar with the matter, the dialogue is part of Bessent's wider effort to assert greater Treasury oversight in financial regulation and to build coordinated international approaches, particularly with U.S. allies. This strategy is largely focused on addressing what the U.S. perceives as China's unbalanced trade practices and safeguarding national security.

“There is a recognition on both sides that financial transparency is a shared interest,” one official said, speaking on the condition of anonymity to discuss the private talks. A Treasury spokesperson declined to comment beyond the Secretary's public remarks.

The engagement comes as the Bessent-led Treasury has actively worked to tighten financial regulation and discourage Chinese investment in sectors deemed critical to U.S. security, such as semiconductors, pharmaceuticals, and steel. The policy has involved using a mix of tariff pauses, regulatory changes, and diplomatic negotiations to incentivize supply chains to relocate away from China.

While the money-laundering talks signal a potential area of cooperation, analysts caution that broader economic friction is likely to persist. Bessent has previously stated that pledges from other nations like Japan and South Korea for U.S. investment have not been replicated by China, marking a significant departure from prior trade frameworks. The long-term outlook anticipates continued regulatory tightening and a security-driven separation of U.S. and Chinese financial and supply-chain ecosystems.