On Wednesday, April 23, United States Treasury Secretary Bensen attended an event hosted by the Institute of International Finance (IIF) in Washington, D.C. He stated that China’s current economic model is unsustainable and requires change. He also mentioned that there may be a significant agreement between the U.S. and China.
Amid the tension in the U.S.-China trade relations that has been affecting global stock markets, Secretary Benson expressed that the U.S. and China have the opportunity to reach a major agreement on trade issues. He criticized Beijing for non-tariff trade barriers, including currency manipulation.
During the IIF event, Benson stated, “If they want to rebalance, then we should work together.”
“This is a rare opportunity. I believe if Ray Dalio, the founder of Bridgewater Associates, were to comment on this, he would call it a beautiful rebalancing,” Benson said.
According to the speech released by the Treasury Department, Secretary Benson emphasized the significant imbalances in the trade sector. President Trump has taken strong actions to address these imbalances and their negative impact on the American people.
Regarding the tariffs announced by President Trump, Benson mentioned that “over a hundred countries have contacted us seeking assistance in rebalancing global trade.” These countries have openly and actively responded to the actions taken by the President to establish a more balanced international system.
Bensen specifically called out the Chinese Communist Party, stating, “China in particular needs to rebalance. Recent data shows that the Chinese economy is further shifting from consumption to manufacturing. Allowing the current situation to continue will lead to more severe imbalances with its trading partners in China’s economic system, which is driven by manufacturing exports.”
“The current Chinese economic model is based on escaping economic hardship through exports. This is an unsustainable model that harms not only China but also the entire world,” he said.
“China needs to change. The country knows it needs to change. Everyone knows it needs to change. We hope to help them change – because we also need to rebalance,” Benson added.
President Trump stated on Wednesday that his administration is engaging in discussions with China on trade issues and added that negotiations with various countries are “progressing very smoothly.”
Trump also mentioned that the U.S. will reach a “fair agreement” with China, and that “everything related to trade negotiations is actively moving forward.”
“Every country wants to participate, even those countries that have exploited us for many years. China is just one example, but it’s not just China, there’s also the EU. They have exploited us for many years, but those days are over,” Trump added, “We will be able to significantly reduce taxes.”