US Aim Is to De-Risk Not Decouple With China, Bessent Says

US Treasury Secretary Scott Bessent urged the United States and China to "de-risk, not decouple" their trade relationship, emphasizing it should advance mutual interests without diminishing sovereignty. During an event in New York, Chinese Ambassador Xie Feng echoed this sentiment, stating that adherence to "red lines" was crucial and a race to the top should be pursued under fairness and mutual benefit.

Both sides highlighted the need for reciprocity, despite acknowledging the challenges their relationship faces. Bessent assured that US-China ties are defined by the interaction between their respective leaders, who are set to meet for a summit next week. Xie reiterated the importance of adhering to certain "red lines" and fostering a mutually beneficial relationship.

The remarks were made a week before Xi Jinping and US President Donald Trump meet for the third time this year during the Apec forum in Shenzhen. Previous groundwork was laid during a video call between Bessent, US Trade Representative Jamie L. Rubinstein, and Chinese Vice-Premier He Lifeng. Bessent stressed the importance of China fully implementing its commitments from the Busan summit and noted that ongoing progress hinges on tangible results, with the US closely monitoring China's adherence to the agreement.

In September, Bessent announced an extension of the trade agreement reached in South Korea, pushing the deadline to January 10, 2027. The two nations also established the Board of Trade mechanism in September, focusing on non-sensitive goods potentially subject to tariff reductions, valued at up to US$30 billion each. Bessent highlighted the necessity for the US to produce more of what it consumes, while China should consume more of its own production.

The US and China are also set to meet again next month at the G20 summit in Miami for an unprecedented fourth bilateral meeting in a single year, underscoring the frequency and significance of their interactions.