Key insights
- Treasury Secretary Bessent indicates the US is encouraging China to open its economy, aiming to rebalance trade and secure supply chains for critical industries like semiconductors and rare earths. While not seeking decoupling, the US prioritizes derisking. Recent Chinese willingness, exemplified by a large Boeing aircraft order, suggests potential for improved stability in the relationship, which could positively impact global trade dynamics and US industrial policy.
Treasury Secretary Bessent thinks the U.S. and China's relationship has good stability after a rocky period. But, "we have the most unbalanced, imbalanced economy in modern history." 🇨🇳
were pushing for the Chinese to open their economy because what has happened, we have this probably the most unbalanced imbalanced economy in modern history.
There are many industries we need to bring back whether it's it's semiconductors, rare earth, medicines and chemicals.
We don't want to decouple, but we need to derisk.
Thus far, we have seen a willingness by the Chinese. They are very interested in the Boeing purchases. They agreed to 200 airplanes during the visit.
I think after a rocky period that we have very good stability in the relationship.