Scott Bessent asserts that China has honored its trade agreement with Trump and foresees significant economic growth in 2026.

Treasury Secretary’s Outlook on U.S.-China Trade Relations

Treasury Secretary Scott Bessent stated on Sunday that China still supports terminating the trade agreement made with President Trump, expressing optimism for “very strong economic growth” in 2026.

In November, a significant trade deal was announced by the White House, where China committed to increasing its purchases of American goods, among other concessions.

“I would say the Chinese lived up to their end of the deal. They completed their soybean purchases,” Bessent mentioned during an interview on Fox News’ Sunday Morning Futures.

According to the agreement, China is set to buy around 12 million metric tons of U.S. soybeans during the last two months of 2025, and an additional 25 metric tons each in 2026, 2027, and 2028.

Recently, President Trump had a phone call with Chinese leader Xi Jinping to discuss various matters concerning the two nations, with Secretary Bessent also participating in that discussion.

Bessent stated, “I believe that President Trump is the only world leader that President Xi respects.”

However, he mentioned that there is still no definite timeline for when the full written text of the trade agreement with China will be available.

The Treasury Secretary highlighted other encouraging economic signs, including a notable achievement where the Dow Jones Industrial Average surpassed the $50,000 mark for the first time.

“We’re seeing the underlying industrial sectors of the market reach new highs,” Bessent explained. “Over my 35, 40 years of experience on Wall Street, it suggests that Wall Street is optimistic about Main Street’s future.”

“The stock market seems to be focused on future growth, and I anticipate very strong economic growth, significant job growth, and robust real income growth,” he added.

Yet, some critics have raised concerns about weak labor market figures, noting that the unemployment rate at the end of 2025 stood at 4.4%, which is up from 4% in January of the previous year.

Moreover, the Consumer Price Index recorded a 2.7% increase in December 2025 compared to a year prior, surpassing the Federal Reserve’s 2% target.

Still, hopeful signs include the Dow Jones milestone and a third-quarter economic growth rate that exceeded expectations at an annualized rate of 4.4%. Bessent recently engaged in discussions with Democratic lawmakers about Trump’s economic performance.

“The president’s plan is so effective that we find ourselves outpacing others in terms of economic growth,” Bessent commented. “A daily measurement called truflation currently shows inflation below 1%. Thus, inflation is manageable, growth is strong, stock prices are reaching record levels, and crime rates have hit their lowest in over a century.”

“Democrats don’t seem eager to discuss these points,” he added.

In a broad conversation about the economy, Bessent also expressed support for President Trump’s selection of former Federal Reserve Board member Kevin Warsh to lead the central bank, highlighting Warsh’s bipartisan support during his previous Fed role.