US Treasury Secretary Scott Bessent said on Tuesday that relations between the United States and China could enter a highly productive phase, stressing that Washington views Beijing as a strategic rival but not an adversary to be economically cut off.
Speaking at the BTG Pactual CEO Conference in Sao Paolo, Bessent said the bilateral relationship was currently on stable footing and that competition between the two global powers should be fair and structured.
“The US China relationship is in a very comfortable place right now,” Bessent said. “We are going to be rivals, but we want that rivalry to be fair. We do not want to decouple from China, but we do need to de risk.”
Bessent confirmed that he plans to hold talks with Chinese Vice Premier He Lifeng in the coming weeks, ahead of a proposed visit to China by US President Donald Trump in April. The Treasury Department has not disclosed details regarding the timing or location of the meeting.
The Treasury Secretary said Washington was focused on reclaiming strategic autonomy in key sectors, including critical minerals, semiconductor manufacturing and pharmaceuticals. He framed the effort as an economic security measure rather than a retreat from global trade.
“We are always going to be competitors,” Bessent said, adding that competition encourages innovation and prevents economic stagnation.
Addressing long term structural imbalances, Bessent argued that China would need to rebalance its economy, warning that its massive trade surplus posed risks to the global system.
“The world cannot sustain a situation where China consistently runs a one trillion dollar trade surplus,” he said.
His remarks come amid ongoing efforts by both countries to stabilise economic relations. The United States and China recently agreed to defer the imposition of restrictions on rare earth exports, a move seen as a confidence building step in managing trade and supply chain tensions.
The comments suggest a calibrated shift in US policy towards China, prioritising de risking and strategic competition while stopping short of full scale economic disengagement.