Bessent urges trade rebalancing as Trump targets Xi meeting in Shenzhen

Treasury Secretary Scott Bessent called for a more balanced economic relationship between the United States and China on Tuesday, framing the goal as a need to reduce reliance on foreign supply rather than sever ties entirely. His comments came as President Donald Trump confirmed plans to meet with Chinese President Xi Jinping and Russian President Vladimir Putin at the Asia-Pacific Economic Cooperation summit in Shenzhen.

Bessent spoke at a gala hosted by the National Committee on U.S.-China Relations, where he acknowledged that the trade imbalance has long caused friction. He stated that the administration's primary objective is to de-risk the relationship, not to decouple the two economies. Bessent argued that the U.S. economy has become too dependent on foreign production, while China has grown increasingly reliant on foreign demand. He suggested that both nations should produce more of what they consume to strengthen their respective economies.

Census Bureau data indicates that the U.S. trade deficit with China reached a 20-year low last year. American firms imported $202.7 billion more in goods from China than Chinese businesses imported from the United States. Although the gap has widened since the turn of the century, the current figure marks a historic low for the annual difference in goods trade between the two countries.

President Trump told reporters in Florida on Sunday that he expects to hold meetings with both Xi and Putin next week in Shenzhen. The president indicated that discussions with his counterparts will focus on denuclearization. According to the Federation of American Scientists, the three nations hold more than 80 percent of the world’s available nuclear warheads.

The upcoming summit follows a September meeting where Trump hosted Xi. Before that gathering, officials from both countries agreed to extend a trade truce until January 10, 2027. The original agreement, reached last year, resulted in lower U.S. tariffs on Chinese exports and a pause in Chinese export controls on rare earth metals. In September, the two sides also agreed to reduce tariffs on $30 billion worth of products.

Two months remain before the countries must decide whether to extend the current truce or negotiate a larger trade deal. Bessent stated that the administration intends to advance a fair and reciprocal relationship. He added that the U.S. is working to restore a spirit of reciprocity to address long-standing structural issues in the bilateral economic partnership.

The diplomatic push aims to stabilize the economic relationship ahead of the scheduled meetings in China. Officials will now work to prepare for the discussions in Shenzhen, where the leaders are expected to address nuclear and trade concerns.