US Treasury Secretary Scott Bessent provided an update on the recent meeting between President Donald Trump and Chinese leader Xi Jinping, stating that both countries are working towards balancing trade between the United States and China [1]. Bessent emphasized that the US holds a stronger position in negotiations due to its trade deficit with China [1]. He also mentioned that upcoming discussions would include a board of investments, focusing on non-strategic and non-sensitive sectors where China could potentially invest [1].
Bessent expressed optimism about the commercial outcomes of the talks, specifically anticipating large Boeing orders from China and increased Chinese purchases of US energy products [1]. He also commented on geopolitical issues, suggesting that China is likely to take action regarding the Strait of Hormuz, which would be beneficial for China, and that China would work behind the scenes to the best of its abilities [1].
Despite these positive remarks, the US Dollar Index (DXY) and S&P 500 futures remained broadly calm, indicating a muted immediate market reaction to the news [1]. No specific forward-looking statements or analyst opinions were provided beyond Bessent's comments.
CONCLUSION
US Treasury Secretary Bessent's comments following the Trump-Xi meeting signal optimism for future US-China trade relations, with expectations of significant Boeing orders and increased energy purchases by China. However, the market response was subdued, as reflected in the stable US Dollar Index and S&P 500 futures.