On Wednesday, June 18, US Treasury Secretary Scott Bessent criticized China’s overwhelming dominance in the global manufacturing sector during a podcast show. Bessent emphasized the need for the US government to restore balance and reverse the excessive reliance on Chinese industries.
According to Bessent, President Trump aims for the US to manufacture more products and regain its status as a powerhouse in precision manufacturing. However, China has been striving to increase its share in the manufacturing sector.
Bessent noted that China’s share in global manufacturing has reached 30%, a figure he described as “already too high.”
Currently, the US and China are still in negotiations to reach a permanent trade agreement.
In May of this year, negotiators from the US and China held their first meeting in Geneva, Switzerland, agreeing to suspend retaliatory tariffs for 90 days. Last week, representatives from both countries reached a framework agreement in London, setting the total import tariffs for Chinese goods at 55% and for US goods at 10%.
Previously, the US had imposed a 145% tariff on Chinese goods, with China responding with a 125% tariff.
During the podcast, Bessent mentioned that discussions during the London meeting included the possibility of lifting export controls, with the US closely monitoring whether China would comply with the framework agreement by supplying rare earths in advance.
Bessent continued, expressing uncertainty over whether China’s failure to export rare earth magnets after the agreement in Geneva was due to technical barriers within China’s system or the bureaucratic and slow-reacting nature of its command and control structure. Meanwhile, the US has taken some countermeasures, such as imposing an embargo on aircraft engines and their components.
Bessent indicated that he might meet with Chinese officials again in “about three weeks” to further discuss trade-related matters and to push for China to open its markets to US goods.
He said, “Our consensus in London was that once the export of rare earth magnets from China begins, we will withdraw the countermeasures. Following that, another face-to-face meeting might be held in approximately three weeks to see if we can achieve a mutually beneficial, equitable situation.”
“As for whether they will truly open their markets, we will wait and see,” Bessent added.