Bessent meets China’s He ahead of Trump-Xi summit, defends U.S. economy
Treasury Secretary Scott Bessent said he is continuing economic and trade discussions with Chinese Vice Premier He Lifeng in New York ahead of a planned summit between President Donald Trump and Chinese President Xi Jinping in Washington.
“These talks help lay the groundwork for President Trump to advance America’s economic interests and deliver results for the American people,” Bessent said Sunday in a post on X.
Bessent didn't disclose the subjects under discussion or announce any agreements. His reference to the meeting as a continuation suggests that officials are trying to narrow their differences before the two presidents meet.
The talks could shape expectations for U.S.-China tariffs, technology restrictions and access to critical minerals. Any progress may ease uncertainty for companies with extensive exposure to Chinese manufacturing and trade, while a breakdown could renew concerns about supply-chain disruptions and higher costs.
Bessent defends the dollar
In a separate social media post, Bessent defended the strength of the U.S. economy and the dollar, arguing that foreign investors continue to show strong demand for American assets.
Bessent endorsed commentary by Larry Kudlow, the former White House economic adviser, disputing a New York Times report about the dollar and Treasury market.
“The record is not ambiguous,” Bessent wrote, citing the dollar’s presence on one side of 89.2% of global foreign-exchange transactions. Because two currencies are involved in each transaction, the combined shares total 200%.
Bessent also pointed to the dominance of dollar-backed stablecoins and the large volume of U.S. assets held by overseas investors. He rejected suggestions that Treasury’s debt-buyback program is intended to manipulate yields or prices.
“Treasury buybacks are about adding liquidity and managing the maturity structure, not somehow controlling a $30T+ market,” Bessent said.
Economic data support his case
Bessent cited several indicators to support his argument. Real median household income increased 2.6% to a record $87,460 in 2025, while the official poverty rate fell to a record-low 10.2%, according to the Census Bureau.
He also highlighted an Atlanta Federal Reserve estimate showing annualized economic growth of 5.1% in the third quarter. GDPNow is a frequently updated projection, rather than an official government estimate, and can change as new data arrive.
Business investment has also expanded, Bessent said, with equipment spending in the second quarter nearly 20% higher than at the end of the Biden administration. He attributed part of the momentum to capital spending on artificial-intelligence infrastructure.
Capital flows under scrutiny
Bessent disputed examples offered as evidence that overseas investors are reducing their exposure to the United States. Norway’s shift from Treasury securities into agency debt still represents an investment in U.S. assets, he said. The Netherlands’ decision to move gold home from North America reflects a preference for domestic custody rather than a broader rejection of the dollar, he added.
He also cited Saudi Arabia’s reported withdrawal from the mBridge cross-border digital-currency initiative as a setback for efforts to develop alternatives to the dollar.
The debate matters to investors because declining international demand for U.S. assets could weaken the dollar and push Treasury yields higher, increasing borrowing costs throughout the economy. Bessent argued that current trading, capital-flow and economic data do not support that scenario.