U.S. Clarifies Trade Strategy with China: Bessent Emphasizes Reshoring, Not Decoupling
U.S. Treasury Secretary Scott Bessent has clarified the Biden administration’s trade policy with China, stating that the United States will continue engaging in trade—particularly in non-strategic goods—while focusing on reshoring vital industries tied to national security.
In an interview shared on CNN and reposted on X, Bessent underscored that the administration’s goal is not to sever economic ties with China but to restore balance and promote open markets.
Strategic Sectors Take Priority
Bessent stressed the importance of bringing key areas of production back to the United States. He specifically referenced semiconductors, steel, and pharmaceuticals—sectors that he said revealed critical vulnerabilities during the COVID-19 pandemic. These remarks signal the government’s intent to strengthen domestic supply chains in industries essential to economic resilience and national defense.
At the same time, Bessent noted that President Donald Trump supports reopening business relations with China, provided that such engagement does not compromise strategic industries at home. The administration’s position appears to be one of cautious cooperation—encouraging trade while reinforcing critical sectors against external risks.
Tariffs Lowered, But Reciprocity Still a Concern
The Treasury Secretary’s comments come shortly after a new U.S.-China trade agreement that reduced tariffs from 145% to 30%, marking a significant de-escalation in trade tensions. However, Bessent warned that tariffs could be raised again to more punitive “reciprocal” levels if trade partners fail to engage in good faith, emphasizing the need for fairness and mutual respect in global commerce.
READ MORE:
JPMorgan Finally Lets Clients Buy Bitcoin
Confidence in U.S. Economy Despite Downgrade
Bessent also addressed concerns stemming from Moody’s recent downgrade of U.S. sovereign debt. He dismissed the move as a lagging indicator that does not accurately reflect the current strength of the U.S. economy. Rather than signaling crisis, he argued, the downgrade should be seen as disconnected from the broader outlook, which remains robust and confident.
In outlining the administration’s approach, Bessent painted a picture of strategic recalibration rather than retreat. By continuing to trade with China while securing domestic industrial foundations, the U.S. aims to strike a delicate balance between globalization and self-reliance.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
