US-China Trade Disputes Show Modest Improvement with Bessent's Bilateral Agreement
Published on 6.14.25
The recent agreement between the US and China to resolve their trade disputes marks a slight easing of tensions in the complex web of international relations. However, significant issues remain to be addressed, including unfair trade practices, excess capacity, transshipment, and fentanyl.
US Treasury Secretary Scott Bessent has been vocal about his concerns with China's economic structure, calling it "the most unbalanced in the history of the world" during a House hearing on Trump's trade policy. He emphasized the need for China to shift away from excess manufacturing production for export and towards greater domestic consumption.
The US has authorized Bessent's team to remove restrictions on chipmaking software, jet engine parts, and ethane sales as part of the bilateral agreement. The US expects export controls to be eased immediately after a handshake, followed by the release of rare earths in volume.