In a recent exchange with Democratic Sen. Maria Cantwell regarding President-elect Donald Trump's proposed trade policies, Scott Bessent, Trump's nominee for the Treasury Department, emphasized the issue of cheap Chinese goods flooding global markets as a reason to impose significant tariffs. Cantwell highlighted the economic opportunities of exporting products and expanding markets outside the United States, to which Bessent agreed but stressed the importance of fair and balanced trade.
During his confirmation hearing before the Senate Finance Committee, Bessent expressed concerns about the imbalance in trade, particularly with China, labeling it as the most unbalanced economy in history. He argued that the American worker has borne the brunt of unfair trade practices and emphasized the need to prevent China from inundating U.S. markets with its products.
While acknowledging China's economic slowdown in recent years, Bessent painted a grim picture of the country's economic situation, suggesting it was in a severe recession or depression. However, official data from China's statistics agency indicated that the economy expanded by 4.6% in the third quarter, with forecasts estimating a growth rate of 4.5% for the current year.
Despite these figures, concerns have been raised about the accuracy of China's economic data due to potential data falsification by local officials. The lack of transparency in China's statistics agency has also been highlighted by experts, including former Federal Reserve Chair Ben Bernanke.
