US Treasury Secretary Scott Bessent has dismissed the possibility of including Chinese investments as part of any trade agreement between the two nations. These comments curtail options for resolving the ongoing trade dispute. Bessent indicated that pledges worth billions of dollars, similar to those made by Japan, South Korea, and the EU, are unlikely to come from China.
Bessent stated that funds from buyouts would be directed towards critical industries needing to be reshored, specifically away from China. He highlighted sectors like semiconductors, rare-earth magnets, pharmaceuticals, and steel as areas where Chinese investment is not anticipated to align with US objectives. Bessent made these comments during an interview with Fox Business on Tuesday in the US.
These statements underscore the competition between the US and China across various sectors, with technology and artificial intelligence being prominent areas of contention. President Donald Trump previously extended a pause on higher tariffs on Chinese goods for 90 days into early November. This action aimed to stabilise trade relations while both countries work towards reaching an agreement.
Chinese companies, particularly in sectors like electric vehicles, have established factories overseas. This strategy allows them to tap into new markets and potentially bypass US tariffs. This strategic move reflects ongoing shifts in global trade dynamics and investment flows amid trade tensions.
