U.S. Treasury Secretary Scott Bessent denied that Chinese investment in the United States could be part of any trade agreement, a statement that narrows the options for both sides to resolve the current dispute.
When asked whether China would make multi-billion-dollar commitments in its trade agreements as Japan, South Korea and the European Union have done, Bessenyei said: “My view is no, because a lot of the acquisitions or acquisition funds will flow into key industries that we need to bring back, and many of these industries need to be brought back from China.”
Bessenet said in an interview with Fox Business News on Tuesday that, regardless of whether the industry is semiconductors, rare earth magnets, pharmaceuticals or steel, “my sense is that it won’t happen.”
Besant’s comment points out that the United States and China are in competition on a series of issues, with the technology and artificial intelligence fields being the most notable. US President Donald Trump has extended the suspension of additional tariffs on Chinese goods for 90 days until early November. This move has stabilized trade relations between the world’s two largest economies as they strive to reach an agreement.
Chinese companies in fields such as electric vehicles have set up factories overseas to enter new markets, and this move may also help them avoid US tariffs.
After Trump’s policy shift, China urges enterprises not to use Nvidia H20 chips.
Besant said in an interview that he would meet with his Chinese counterparts again “within the next two or three months”.
He also said that Washington hopes to see China take measures over a relatively long period of time to prevent the flow of chemicals used to make fentanyl, and then reduce the tariffs imposed by Trump on this issue.
He said, “We need to see progress over several months, several quarters, or even a year before I can imagine these tariffs coming down.”
