Treasury chief cites $202.7 billion gap before Trump meets Xi

The United States imported $202.7 billion more in goods from China than Chinese businesses imported from the United States last year, according to Census Bureau data cited by Treasury Secretary Scott Bessent on Tuesday. The figure represents a 20-year low for the trade deficit, yet it remains the central point of friction between the two economies.

Bessent addressed a gala hosted by the National Committee on U.S.-China Relations to outline the administration's strategy. He stated that the primary goal is to de-risk the economic relationship rather than decouple entirely. The Secretary argued that the U.S. economy has become too dependent on foreign supply, while China relies too heavily on foreign demand. He proposed that both nations adjust their production and consumption habits to correct these structural imbalances.

President Donald Trump said on Sunday that he expects to meet with Chinese President Xi Jinping and Russian President Vladimir Putin next week. The summit will take place in Shenzhen, China, during the Asia-Pacific Economic Cooperation meeting. Trump told reporters in Florida that denuclearization will be a key topic of discussion. According to the Federation of American Scientists, the three nations hold more than 80 percent of the world's available nuclear warheads.

This diplomatic engagement follows a September summit where Trump hosted Xi. Officials from both countries agreed to extend their trade truce until January 10, 2027. That agreement resulted in lower U.S. tariffs on Chinese exports and a pause in Chinese export controls on rare earth metals. In the same September meeting, officials agreed to reduce tariffs on $30 billion worth of products.

With two months remaining before the current truce expires, the administration faces a deadline to either extend the deal or negotiate a larger agreement. Bessent said the government intends to advance a fair and reciprocal relationship. He noted that after decades of imbalance, the U.S. is working to restore reciprocity for the benefit of both countries.

The Treasury Secretary emphasized that the objective is a sustainable economic partnership that addresses long-standing structural issues. He framed the current efforts as a move away from the status quo, where the gap between imports and exports had grown since the turn of the century. The administration's position is that working together on these adjustments will strengthen both economies without perpetuating the existing imbalance.