US Treasury Secretary Scott Bessent and China’s Vice-Premier He Lifeng held a video call on Friday, kicking off crucial diplomatic efforts between the President Xi Jinping government and the new Trump administration.
As expected, the Chinese side raised “serious concerns” on the recent imposition of tariffs and other restrictive measures on Chinese goods by the Trump White House, at a moment of growing fears of a renewed trade war.
“Both sides recognized the importance of China-US economic and trade relations and agreed to continue to maintain communication on issues of mutual concern,” a rather guarded and vanilla readout from the Chinese government’s State Council said.
The “in-depth” exchange of views recognized the importance of bilateral economic and trade relations, the Chinese readout said further.
Likely central to the conversation was Beijing’s objections to the Trump-imposed 10% tariffs which came in early February as a punitive response to the explosion of Chinese fentanyl trafficking. Beijing had hit back with targeted tariffs of up to 15% on select US imports, and warned that sanctions – including on Google – could come next.
The readout issued soon after the call from the US Treasury chief highlighted that Bessent and Vice-Premier He discussed counternarcotics efforts, economic imbalances, and unfair policies.
Below is the short US readout in full:
Earlier today, Secretary of the Treasury Scott Bessent had an introductory call with Vice Premier He Lifeng of the People’s Republic of China to exchange views on the bilateral economic relationship. Secretary Bessent expressed serious concerns about the PRC’s counternarcotics efforts, economic imbalances, and unfair policies, and stressed the Administration’s commitment to pursue trade and economic policies that protect the American economy, the American worker, and our national security. Secretary Bessent and Vice Premier He agreed to remain in communication going forward.
The question of a likely visit by Chinese President Xi to Washington looms large in the background. The day prior, Trump while speaking to reporters aboard Air Force One indicated he expects Xi to visit soon, but didn’t reveal a timeline.
Saying that “it’s possible” for for Washington and Beijing to strike a new trade deal, he acknowledged that more direct talks are needed. “We’ll have, ultimately, President Xi, we will have everybody coming (to the US),” Trump said.
The recent response from Chinese state media…
Instead of protecting American economic interests, Washington’s tariffs, as multiple studies have shown, have driven up prices, reduced economic output and employment, and dented the overall economy. https://t.co/irR3Leg8Pi pic.twitter.com/hGY1B3p45T
— China Xinhua News (@XHNews) February 21, 2025
The Republican president has further lately teased the threat reciprocal tariffs for all countries that tax US imports, which would escalate global trade tensions.
In a January Hannity interview just days after being sworn in to his second term, Trump displayed a reluctance to escalate the trade war, stating that he would “rather not” impose tariffs on China. He has emphasized his willingness to negotiate with President Xi and has sought to avert a clash between the world’s two largest economies.
Tyler Durden
Fri, 02/21/2025 – 17:20
