Treasury Secretary Scott Bessent suggested on Monday that trade talks with China are still far away from progressing, saying it is up to Beijing to take the first step toward de-escalation.
Speaking to Fox News, Bessent said China stands more to lose from the current scenario than the U.S. because "they sell to us five more times than what we sell to them."
"We are a crucial part of their business model. Selling selling cheap, subsidized goods to the U.S. is crucial for the Chinese economy. We're already seeing a slowdown there. The government is trying to take counter-cyclical measures to help the economy. The country with a surplus also loses the most. We have a huge deficit," Bessent said.
KILMEADE: What about China? Do you plan on calling your counterpart?
— Aaron Rupar (@atrupar) April 28, 2025
BESSENT: Maybe they'll call me one day pic.twitter.com/ne9xV0NOsR
Asked if he was planning on calling his Chinese counterpart, Bessent said "we'll see what happens." It's unsustainable for the Chinese said. Maybe they'll call me one day," he added.
In another interview with CNBC, Bessent said "it's up to China to de-escalate" and that the U.S. could increase pressure further. He claimed he has an "escalation ladder in my back pocket and we're very anxious not to have to use it." He clarified it could include an "embargo."
The Treasury Secretary added that talks with China are being sidelined at the moment as the Trump administration seeks to announce deals with over a dozen countries. He said the first one could be with India.
China, on its end, demanded last week that the Trump administration take the first step in negotiations. Commerce Ministry spokesperson He Yadong said last Thursday that there were "absolutely no negotiations on the economy and trade" with the U.S. He made it clear that any forward motion would require the U.S. to first cancel what China sees as "unilateral" measures. Chinese officials reiterated their condition that negotiations can only proceed if Beijing is treated as an equal partner.
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