U.S. and China: Constructive Rivals in Global Economy

U.S. Treasury Secretary Scott Bessent has expressed optimism about fostering a productive relationship between the U.S. and China, welcoming Beijing as an economic rival while striving for fair competition. Bessent, speaking at the BTG Pactual CEO Conference in Sao Paulo, Brazil, stated the U.S.-China relationship is "comfortable" and stressed the importance of avoiding economic decoupling while focusing on minimizing risks.

He is scheduled to meet with Chinese Vice Premier He Lifeng in the coming weeks to discuss strategic issues ahead of a planned visit to China by U.S. President Donald Trump. These talks are crucial in retaking sovereignty in key industries, including critical minerals and semiconductors, reflecting Bessent's stance that competition enhances growth and innovation.

Bessent also noted the need for China to rebalance its economy to avoid a $1 trillion trade surplus. Recent phone discussions with China's delegation have aimed at promoting stable trade relations. An agreement saw Beijing deferring rare earth export controls and Washington dropping certain tariffs, with China soon to fulfill key trade commitments.