Treasury Secretary Scott Bessent on Tuesday urged a more equitable trading relationship with China, just days before President Trump is expected to meet with Chinese President Xi Jinping. Speaking at the National Committee on U.S.-China Relations Gala, Bessent pointed to the long-standing U.S. trade deficit with Beijing as a persistent source of tension.
"The U.S. trade imbalance with China has long been a source of friction," Bessent said. He added, "Let me state firmly and unequivocally tonight that as we work toward a more balanced relationship, our objective is to de-risk, not to decouple."
Data from the Census Bureau shows that America's trade deficit with China fell to a 20-year low last year, with U.S. firms importing $202.7 billion more in goods than they exported. While the deficit has narrowed, it remains substantial, reflecting decades of imbalance that have shaped the economic relationship between the world's two largest economies.
Bessent argued that the American economy has become overly reliant on foreign supply, while China's economy depends increasingly on external demand. "In other words, the United States must produce more of what we consume, while China must consume more of what it produces," he said. "Working together, we can strengthen both of our economies without perpetuating the imbalances between them."
The remarks come as President Trump announced Sunday that he expects to meet with Xi and Russian President Vladimir Putin at the APEC summit in Shenzhen next week. Trump told reporters in Florida that one of the meetings will involve both leaders, and that he intends to discuss "denuclearization." The U.S., China, and Russia together hold over 80% of the world's nuclear warheads, according to the Federation of American Scientists.
This would be the second face-to-face meeting between Trump and Xi in recent months. In September, the two leaders agreed to extend their trade truce until January 10, 2027. That deal reduced U.S. tariffs on Chinese goods and prompted China to suspend export controls on rare earth metals. Officials also agreed to lower tariffs on $30 billion worth of products.
With just two months remaining before the truce expires, Bessent said the administration is committed to "advance a fair and reciprocal relationship with China." He noted, "After decades of imbalance, we are restoring a spirit of reciprocity for the benefit of both of our peoples."
The upcoming summit carries high stakes, as analysts watch for signs of a broader trade deal or another extension. The president's focus on denuclearization adds a strategic dimension, linking economic talks with security concerns. As China's dominance in clean energy continues to shape global markets, the trade relationship remains a key lever in U.S. policy toward Beijing.
Bessent's comments echo a broader administration stance that seeks to recalibrate ties without severing them. The Treasury chief's insistence on de-risking rather than decoupling signals a pragmatic approach, even as political pressure mounts for tougher action on China. With the APEC summit approaching, all eyes will be on whether Trump and Xi can translate their personal rapport into lasting economic agreements.
