Treasury Chief Bessent Says US-China Trade Status Quo Working Well Enough

U.S. Treasury Secretary Bessent has described the current U.S.-China trade status quo as “working pretty well,” signaling that both sides are maintaining a fragile balance despite ongoing tensions. The remarks come at a time when global markets are closely monitoring the relationship between the world’s two largest economies.

Speaking at an economic forum in Washington, Bessent noted that while differences remain, the trade relationship between the United States and China has stabilized compared to recent years of tariff battles and political disputes. She emphasized that both countries appear committed to managing disagreements without escalating into another full-scale trade war.

“The status quo is not perfect, but it is functional,” Bessent said. “Trade flows are continuing, supply chains are adapting, and both economies are benefiting from the current arrangement.”

Her comments reflect a more pragmatic approach to U.S.-China relations, especially after years of volatility caused by tariff hikes, sanctions, and retaliatory measures. For businesses and investors, the message signals continuity—an important factor in maintaining confidence in global trade.

Economists point out that U.S. imports of Chinese goods remain steady, while American agricultural and energy exports to China continue to meet strong demand. Although tariffs imposed in previous years remain in place, both sides have adjusted to the new trade environment without significant disruptions.

However, Bessent also acknowledged ongoing challenges. Issues such as technology restrictions, intellectual property rights, and competition in emerging industries like artificial intelligence and green energy remain unresolved. “These are sensitive areas that require careful negotiation,” she said, adding that the Treasury Department continues to work with international partners to ensure fair competition.

Market reaction to Bessent’s comments was largely positive. U.S. stock futures edged higher as investors welcomed signs of stability. Analysts noted that a “working status quo” could help shield global markets from additional shocks at a time when other uncertainties—such as conflicts in Europe and rising energy prices—are weighing on economic growth.

At the same time, some trade experts caution that complacency could be risky. The U.S.-China economic relationship remains highly interdependent, and unexpected policy shifts could easily disrupt the balance. Calls for diversification of supply chains, particularly in critical sectors like semiconductors, are growing louder in Washington.

Chinese officials have not directly responded to Bessent’s remarks but have previously signaled a desire for pragmatic cooperation. Beijing has emphasized the need for stability in trade ties while resisting pressure on issues it considers core national interests.

As both nations navigate their complex relationship, the current arrangement may provide breathing room. Yet, the long-term trajectory of U.S.-China trade will depend on whether leaders can address structural issues and avoid repeating the confrontations of the past.

For now, Treasury Chief Bessent’s assessment suggests that the world’s two largest economies are managing to coexist in a delicate but workable trade framework—one that global markets hope will hold steady in the months ahead.