U.S. Treasury Secretary Bentson introduced President Trump's "America First" economic vision to global investors in Los Angeles, California today (May 6), calling for continued investment in the United States. He also stated that substantive progress may be achieved in negotiations with China in the coming weeks. Bentson frankly said, "In the trade policy puzzle, China is undoubtedly the largest piece and can make a beautiful reorganization."

Regarding the negotiations with China, Bentson said, "I believe we will see substantial progress within the next few weeks. We will see this because, according to Stein's Law, unsustainable things will not continue (and will stop). Therefore, tariff levels of 145% and 125% are equivalent to an embargo."

Bentson added, "We are understanding the situation of Chinese factories every day. From an academic perspective, I can tell you that in the history of trade wars, we have been the deficit country. The losses of surplus countries are always the greatest."

Commenting on a few points: First, the statement that "in the trade policy puzzle, China is undoubtedly the largest piece and can make a beautiful reorganization" regards China as a tool for the U.S. to achieve its trade policy objectives, completely ignoring China's interests and development needs as a sovereign nation.

Secondly, Bentson said, "We will see substantial progress within the next few weeks," but whether the Sino-U.S. trade negotiations can make progress depends on whether the U.S. has sincerity to negotiate with equality, respect, and reciprocity. Looking back, the U.S. has repeatedly gone back on its word in trade negotiations, violating agreements, causing constant setbacks in the negotiation process. If the U.S. continues to uphold the unilateralism and protectionism of "America First," threatening and pressuring with tariff sticks, it will be difficult to achieve substantial results in the negotiations.

Thirdly, Bentson believes that "the losses of surplus countries are always the greatest." This view is one-sided. There are no winners in a tariff war. The high tariffs imposed by the U.S. on China have also imposed high costs on American businesses and citizens, disrupting global industrial and supply chains. China does not deliberately seek a trade surplus. The current state of Sino-U.S. trade is the result of market forces and is influenced by various factors such as the economic structures of both countries, trade policies, and the status of the U.S. dollar. The U.S. should face up to its own economic structural problems and abandon its bullying trade practices.

Original source: https://www.toutiao.com/article/1831367397421139/

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