US Treasury Secretary Expresses Concerns Over China’s Manufacturing Dominance
WASHINGTON – Treasury Secretary Scott Bescent commented on Friday about the significant share of global manufacturing held by China, stating it has been “too high” in recent years. He emphasized the need for the Trump administration to return some balance to this dynamic.
In an interview with postcolumnist Miranda Devine for “The Latest Episode,” Bescent noted that “President Trump aims for the US to become a significant player in precision manufacturing once more, while China continues to strive for an even larger portion of the manufacturing sector.”
The Secretary pointed out that China’s current 30% share in global manufacturing is already excessive and doesn’t have room to increase further.
Bescent has been engaging in discussions aimed at establishing a permanent US-China trade agreement that would facilitate greater exports from the US. These talks followed a meeting with Chinese negotiators in May, which marked their first encounter in Switzerland.
The backdrop of these discussions includes escalating tensions from the trade war, particularly after the US imposed a 145% tariff on China, leading Beijing to retaliate with a 125% tariff on American goods.
Ultimately, the US modified China’s tariff rate down to 10% while imposing a corresponding rate of 30% on China, supplementing an existing 25% obligation.
Recently, the two sides convened in London to further explore the removal of China’s export controls. Bescent shared in “Pod Force One” that efforts were underway to ease these restrictions. However, he mentioned, “The magnets weren’t flowing as promised in Geneva. It’s uncertain how significant the glitches within the Chinese system are since it operates in a rather slow command and control manner.” While the US imposed certain measures on China, some were publicized.
During a speech in London, Trump declared that deals have been reached between the US and China, stating, “Our agreement is pending final approval between President Xi and me.” He mentioned that essential supplies would be provided by China in advance.
Besides trade agreements, Bescent highlighted educational exchanges, expressing a positive view on Chinese students studying at US universities. He mentioned a tariff arrangement where the US would receive 55%, while China would be subject to 10%, suggesting an improvement in relations.
Looking ahead, Bescent indicated that there is a likelihood of another meeting with Chinese representatives in around three weeks to continue discussions on trade and facilitating access for US products in the Chinese market.
“The plan is for the magnets to start flowing smoothly, we remove the restrictions, and then we reconvene face-to-face in three weeks to evaluate if we can achieve this mutual rebalance,” he stated. “We’ll see if they decide to open up.”
