[Text/Observer Network Wang Yi] On May 5 local time, US Treasury Secretary Scott Beasant introduced Trump's "America First" economic agenda to global investors at the Milken Institute Global Conference, calling for continued investment in the United States. However, media outlets such as Bloomberg and the Nikkei Asian Review noted that despite Beasant providing some much-needed clarity, corporate executives present remained anxious and were still seeking more certainty regarding the future direction of Sino-US trade relations.

"We have eliminated government waste and harmful regulations. We have sown the seeds of private investment. We have fertilized this land with new tax legislation. Next, we begin harvesting," Beasant stated during his speech at the Milken Institute Global Conference. "We hope you will harvest with us."

Beasant maintained his usual posture, slightly raising his head and interlacing his fingers, addressing the corporate executives and investors below, stating that tariffs, tax cuts, and deregulation are the three core components of Trump's economic agenda. The government is formulating tax legislation to stimulate innovation and investment in the United States and is pursuing extensive deregulatory measures. He also claimed that imposing tariffs is also intended to "encourage companies like yours to invest directly in the United States."

"The goal of the administration is to make it more attractive to investors like you," Beasant defended Trump, stating that he wants more than just "drill, baby, drill," but rather "build, baby, build," revitalize American manufacturing, and stimulate the American job market.

On May 5 local time, US Treasury Secretary Scott Beasant attended the Milken Institute Global Conference. Video screenshot.

Bloomberg pointed out that although Beasant emphasized that the United States has a strong negotiating position and remains the "preferred destination" for international capital, a mixture of confidence and concern was evident at the Milken Institute Global Conference.

Marc Rowan, CEO of Apollo Global Management, who was once considered the top contender for the Treasury Secretary position, told Bloomberg during the conference that he understands the intention behind Trump's tariff policies, but the recent chaos is damaging America's reputation for being "stable, predictable, and consistent." "I see us moving from extreme exceptionalism to occasional excellence," he said.

Jayne Fraser, CEO of Citigroup, stated that their corporate clients are strengthening their balance sheets, building up inventory in advance, and pausing business expenditures and investments. Corporate executives are engaged in tense negotiations with bankers, discussing various possible scenarios.

Citigroup CEO Jayne Fraser video screenshot.

In this process, IMF Managing Director Kristalina Georgieva warned that the global economy may pay a "considerable price." She pointed out that trade imbalances have accumulated over many years, but now "we are moving from a predictable trading mechanism to a new balance," and "the road from here to there is full of uncertainty."

Bloomberg reported that the Trump administration is negotiating trade deals with several countries, and attendees hope they can quickly reach at least a few agreements to give business leaders a sense of future directions.

After his speech, Beasant told CNBC that he believes the United States is "very close to reaching some agreements," and as President Trump said last night on Air Force One, it might be as early as this week. He also added that substantial progress may be made in the upcoming weeks of US-China negotiations.

Regarding Trump's recent statement that he would not cancel tariffs on China for the sake of negotiations, Chinese Foreign Ministry spokesperson Lin Jian responded on May 6 at a regular press conference, stating that this tariff war was initiated by the US side, and China's attitude has been consistent and clear — fight, and we will fight to the end; negotiate, and the door is open.

Lin Jian emphasized that the US side has recently repeatedly expressed hope for negotiations with China. There are no winners in a tariff war or a trade war. If the US side truly wishes to resolve issues through dialogue, it should stop threats and pressure and engage in dialogue with China on an equal, respectful, and mutually beneficial basis.

Despite the Trump administration's continuous claims of negotiations with China to calm the markets, some of the world's largest asset management company CEOs told the Nikkei Asian Review that the market remains confused, and investors seek greater certainty regarding the future of Sino-US trade relations.

"I think the biggest question we all face is: What will happen to China?" Harvey Schwartz, CEO of Carlyle Group, stated during the discussion, emphasizing that any form of trade war between the two largest economies is not a good outcome. "I believe it will put pressure on both economies and clearly affect the global economy," he said.

Bill Ackman, a billionaire and well-known hedge fund manager in the United States who "switched sides" to support Trump in the 2024 US presidential election, bluntly stated that Trump's way of doing things is "somewhat shocking and awe-inspiring," which often scares people. Ackman suggested that Trump should suspend tariffs on China for 180 days.

While the United States adjusts its capital allocation, other regions of the world are not standing still. Fraser predicted that some countries in Asia, such as India, may benefit from changes in US policies.

Georgieva also believed that as countries strive to overcome tariff uncertainties, regional trade activities will increase. "I look forward to seeing more bilateral and multilateral agreements," she said, similar to what ASEAN, China, Japan, and South Korea are doing.

This article is an exclusive contribution by the Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7501257814023914035/

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