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From Tariffs to Talks: Bessent Says the U.S. and China Are Back in Conversation”
In a move that surprises absolutely no seasoned diplomat, U.S. Treasury Secretary Scott Bessent declared he’s “optimistic about China” and confirmed that Washington is in communication with Beijing even amidst escalating trade tensions. The timing is rather perfect: threats of sweeping tariffs, rare earth export controls, and harsh diplomatic posture in recent weeks. But sure, “optimism” is back in the playbook.
At a televised briefing, Bessent emphasized that lines of communication between the two superpowers remain open, and that diplomacy in between threats of 100% tariffs and accusations of economic sabotage is not off the table. He noted that weekend talks and staff-level meetings have already taken place. Meanwhile, China hasn’t exactly softened its tone: Beijing is defending new export restrictions and accusing the U.S. of threatening global supply chains.
The Dance of Diplomacy & Trade Bluster
Why now, and why say it?
Given recent escalations including new export controls on rare earth minerals and warnings of sweeping U.S. tariffs Bessent’s optimism reads like damage control. He’s trying to assure markets, allies, and trade partners that despite the noise, negotiations are alive.
What’s really going on behind the scenes
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Staff-level diplomacy is reportedly ongoing, with U.S. and Chinese teams exchanging proposals and rebuttals.
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The planned Trump–Xi meeting in South Korea is still expected to happen, though Bessent says “all options are open.”
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U.S. Trade Representative Jamieson Greer hinted that whether tariffs go forward on November 1 depends on China’s actions.
China’s retrospective
Beijing has responded sharply. Officials argue U.S. claims are exaggerated and warn that restricting rare-earth exports is a sovereign right. They also stress that trade interventions must respect national security.
So we have: Bessent saying, “Trust me, we’re talking.” China saying, “Nice try.” Meanwhile, markets are squirming.
Risks of Optimism in a Tariff War
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Optimism vs. reality gap: Saying “we’re talking” doesn’t undo balance-of-payments stress, supply chain disruption, or inflationary pressure.
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Tariff deadlines loom: The Nov. 1 tariff date is still in the air that’s not exactly negotiable territory.
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Mixed signals: With Beijing’s combative stance and U.S. threats, investors may dismiss optimism as posturing.
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Trust erosion: After years of escalations, simply claiming dialogue exists may not be enough to restore market confidence.
FAQs
Q: Did Bessent really say he’s optimistic about China?
Yes. Secretary Bessent confirmed optimism and continued communication in interviews and press briefings.
Q: What is the nature of U.S.–China communication now?
Talks are occurring at staff levels, and Bessent says that more communication happened over the past weekend.
Q: Does that mean tariffs won’t happen?
Not necessarily. Future tariffs depend on China’s responses, according to U.S. officials.
Q: What does China say in reply?
China rejects U.S. restrictions, defends its export controls, and warns that it won’t be bullied.
Q: Is the Trump–Xi meeting still on?
Yes, Bessent asserts the meeting is still scheduled, even as tensions simmer.