Will US-China trade relations welcome a "beautiful rebalancing"? US Treasury Secretary signals reform.

As U.S.-China trade tensions continue to develop, U.S. Treasury Secretary Scott Bessent publicly said on Wednesday that a "major deal" is on track. He not only called on China to participate in economic rebalancing, but also made concrete proposals for reform of the international financial system, pointing out that the World Bank and the International Monetary Fund are deviating from their original intentions.

Baysent extends an olive branch: Partnering with China for economic rebalancing

Beisent emphasized during a talk at the Institute of International Trade and Finance in Washington, "This is a great opportunity. If China wants to achieve economic rebalancing, let’s do it together." He even borrowed the tone of Ray Dalio, the founder of Bridgewater Associates, describing this as a potential "beautiful rebalancing."

Ray Dalio warned about Trump's trade policy during an interview with NBC on April 13, stating that excessive tariff measures could lead to "worse than a recession" and pose a significant threat to the global economy.

Trump's tariff policy shift? Up to 145% may be revised down.

Currently, the tariffs imposed by the United States on Chinese goods have reached 145%, a historical high. The Wall Street Journal reported that shortly before Bannon's speech, the Trump administration was considering reducing this tariff to between 50% and 65%. Although the reduction is significant, it is still well above general international standards.

Besen's move may be paving the way for a potential policy shift. He stated that the U.S. manufacturing sector and supply chains have long been affected by the policies of other countries, which not only undermines the industrial foundation but also poses challenges to national security.

Pointing out the IMF and World Bank: Deviating from their original purpose, urgently in need of reform.

In his speech, Bessent presented a blueprint to restore balance to the global financial system, directly targeting the two major institutions under the Bretton Woods system—IMF and the World Bank. He pointed out that these institutions "have long strayed from their original mission" and should now refocus on serving member countries, rather than becoming a burden.

"The IMF and the World Bank still have long-term value, but critical reforms must be made in order to truly contribute to global economic stability," he said.

Is the World Bank still lending money to China? Bessent criticizes it as unreasonable.

Bessenet criticized the World Bank for continuing to provide loans to economies like China that have "graduated". He believes this practice undermines the allocation of resources to countries with more urgent needs and stifles the development potential of the private sector.

"China is the world's second-largest economy, yet it is still regarded as a developing country, which is truly absurd," he said. "China's rise is remarkable, and we welcome its corresponding role in the global economy. But this also means that it should graduate from the World Bank."

Will US-China relations迎come to a turning point? Still waiting for further observation.

Bessent's remarks seem to reveal that the United States is open to restarting economic dialogue with China and is sending strong signals for the reform of global financial governance mechanisms. However, whether the policy can truly be implemented and whether the Trump administration will actually lower tariffs still needs to be observed in the upcoming actions from the White House and the Chinese response.

This article discusses the potential for a "beautiful rebalancing" in US-China trade relations. The US Treasury Secretary has released signals for reform, first appearing in Chain News ABMedia.