Treasury Secretary Scott Bessent made clear on Wednesday that the United States will not back down from its tough position on China just because the stock market has been going up and down.
Speaking at CNBC’s Invest in America Forum, Bessent said the government will not start talks with Beijing simply because stocks are falling. He stressed that trade decisions will be based on what makes economic sense for America, not on market reactions.
Bessent took aim at a Wall Street Journal story published overnight that suggested Chinese leaders think another big market drop will eventually push President Donald Trump to the negotiating table. The newspaper reported that Chinese President Xi Jinping believes the American economy cannot handle a long trade fight with China, according to sources familiar with Beijing’s thinking.
The Treasury chief called the Journal report “terrible” and accused the publication of taking “CCP dictation.”
His remarks came during a period of wild market swings tied to the uncertain state of trade discussions between the world’s two biggest economies. Stocks dropped hard on Friday after Trump said he would raise tariffs on Chinese imports to respond to new rules China put in place restricting exports of rare earth minerals.
Bessent said on Wednesday that although Trump appreciates a strong stock market, the president views market strength as an outcome of effective policy decisions rather than a goal in itself. He cited increased AI investment as one example of how policy initiatives are fueling stock market growth.
Bessent said he expects the United States and several partner countries to respond together to China’s move. He noted that finance leaders from around the world are in Washington this week for the yearly meetings of the International Monetary Fund and World Bank.
“We’re going to be speaking with our European allies, with Australia, with Canada, with India and the Asian democracies,” Bessent said earlier at the forum.
The back-and-forth moves between Washington and Beijing have made investors worried that the two largest economies might soon be in a full trade war.
Longer tariff pause for China on the table
The Treasury Secretary also revealed that the administration is considering a longer break from the high tariffs on Chinese goods if Beijing agrees to drop its planned tighter limits on critical rare earth materials.
Starting from earlier this year, the U.S. and China have implemented successive 90-day suspensions of import tariffs that had reached as high as 145%. Another deadline is approaching in November. The Trump administration is now attempting to block China’s proposed strict export restrictions on rare earth elements through a dual strategy which is providing incentives if China drops the measure and imposing severe consequences if it moves forward with the restrictions.
“Is it possible that we could go to a longer roll in return? Perhaps. But all that’s going to be negotiated in the coming weeks,” Bessent said Wednesday at a press conference in Washington.
Presidential meeting still expected
As Cryptopolitan reported, Trump said there was no reason to meet Xi. However, Bessent said Trump “is a go” on meeting Xi later this month in South Korea, as far as he knows. He added there is a “very good chance” he will travel to Asia before Trump and meet with his Chinese counterpart, Vice Premier He Lifeng.
Bessent said he expected trade announcements to be made during Trump’s Asia tour. The president is expected to attend a summit with Association of Southeast Asian Nations in Malaysia before going on to Japan and South Korea, which will be hosting the yearly Asia-Pacific Economic Cooperation leaders meeting.
The U.S. is “about to finish up” negotiations with South Korea, Bessent added. Those talks have lately revolved around the outlines of a giant investment program. U.S.-Canada talks are “back on track,” Bessent also said. He also indicated progress with India.
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