Treasury Secretary Scott Bessent confirmed Tuesday that President Donald Trump‘s upcoming April visit to Beijing will focus on dismantling China’s massive trade imbalances, signaling a shift toward aggressive economic self-reliance.
The Road To Beijing
Speaking at the BTG Pactual CEO Conference, Bessent signaled that the administration will use the meeting to confront a $1 trillion trade surplus he labeled “impossible” to maintain, while pivoting the U.S. toward a new era of industrial independence.
The Treasury Secretary solidified the timeline for the spring summit, noting that recent high-level staff visits to China have cleared the diplomatic path. He framed the visit as a necessary step to rebalance a relationship that has become lopsided.
“The world cannot have a situation where China persistently runs a $1 trillion trade surplus. That’s just not possible,” Bessent stated. He emphasized that the April engagement would be a primary venue to address these imbalances, noting that while the U.S. wants a productive relationship, the “impossible” status quo of current trade flows must end.
This trip is expected to be the first of up to four bilateral meetings between the two leaders in 2026, aimed at cementing the fragile equilibrium reached after the October trade truce.
Retaking Strategic Sovereignty
A cornerstone of the April agenda will be what Bessent called “retaking sovereignty in strategic industries.” He argued that the U.S. must reclaim control over critical supply chains to ensure national security and economic resilience.
“Whether it’s critical minerals, whether it’s semiconductors, uh… medicines that U.S., as we saw during COVID very dependent on China for medical supplies,” Bessent said.
He explained that “competition makes you better” and that the U.S. is currently “winning the AI race,” but must secure its lead by reducing reliance on rivals.
Bessent characterized the administration’s goal as “fair competition and de-risking, not decoupling,” but emphasized that the U.S. would no longer tolerate lopsided trade dynamics that disadvantage domestic workers.
Fundamentals And The Strong Dollar
Bessent also linked the success of the upcoming summit to the strength of the American economy. He credited the administration’s focus on deregulation and energy for creating the leverage needed for tough negotiations.
“A strong dollar comes from strong fundamentals. That is exactly what @POTUS @realDonaldTrump is achieving through tax certainty, regulatory clarity, and energy independence,” Bessent noted.
He concluded by asserting that “when the U.S. is the most attractive place for capital, the trend speaks for itself,” providing the President with a “position of strength” as he heads to Beijing.
Dow Jumps Over 3% In 2026
As of Tuesday’s close, the Dow Jones index rose 3.73% year-to-date, whereas the S&P 500 was 1.22% higher. However, the Nasdaq Composite index was down 0.57% in 2026.
Meanwhile, the U.S. futures were trading higher on early Wednesday following a mixed close on Tuesday.
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Wednesday. The SPY was up 0.17% at $693.28, while the QQQ advanced 0.16% to $612.24.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock
Recent Comments