WASHINGTON: US Treasury Secretary Scott Bessent and his Chinese counterpart He Lifeng raised mutual concerns on trade and economic issues in their introductory call Friday, as tensions between the world’s two biggest economies simmer under President Donald Trump’s second term.
The talks came shortly after Trump imposed additional tariffs on imports from China over its alleged role in the deadly fentanyl trade, which Beijing has pushed back against.
“Secretary Bessent expressed serious concerns about the PRC’s counternarcotics efforts, economic imbalances, and unfair policies,” said a Treasury Department readout, referring to the People’s Republic of China.
Meanwhile, Chinese Vice Premier He Lifeng “expressed serious concerns about the recent restrictive measures, such as increased tariffs, imposed on China by the United States,” according to state broadcaster CCTV.
Trump has wielded the threat of tariffs against allies and adversaries alike – including China – since taking office last month.
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He imposed additional customs duties of 10 percent on all products imported from China at the start of this month, and has threatened further moves while also suggesting a trade deal with Beijing is possible.
But Beijing has strongly opposed tariffs imposed “under the pretext of the fentanyl issue,” according to its foreign ministry, arguing that such levies cannot solve what it called a US domestic problem.
Minutes after the fresh US tariffs took effect this month, China unveiled levies on imports of US energy, vehicles and equipment.
Protecting US economy
In the call Friday, Bessent also stressed the Trump administration’s “commitment to pursue trade and economic policies that protect the American economy, the American worker, and our national security.”
But Bessent and He agreed to remain in communication going forward.
“Both sides recognized the importance of China-US economic and trade relations, and agreed to continue to maintain communication on issues of mutual concern,” CCTV said.
China hits back with tariffs on US goods after Trump imposes new levies
The call took place at Bessent’s request, according to the Chinese broadcaster.
Bessent’s predecessor Janet Yellen held several meetings and calls with He, and visited Beijing in an effort to stabilize bilateral economic ties ahead of announcing targeted tariff hikes.
Washington has long accused Beijing of failing to crack down on the production of chemical components that are typically exported to Mexico and made into fentanyl before being transported into the United States.
Asked on Thursday about Trump’s comments on a prospective trade deal, China’s foreign ministry said the two countries “should resolve their concerns through dialogue and consultation based on equality and mutual respect.”
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