U.S. Treasury Secretary Bessent has once again weighed in, this time turning attention to China. On November 13, Bessent stated, “The Chinese economy is too weak. Europeans are undergoing a slow-motion economic self-destruction. As for emerging markets, I believe much of the Global South is underperforming.” On paper, the U.S. economy appears strong: third-quarter GDP grew at an annualized rate of 3.4%, up from 2.2% in the second quarter.
Bessent’s rhetoric, in essence, follows a familiar pattern—downplaying others while elevating one’s own. Yet the 3.4% GDP growth figure in the United States carries significant caveats. Approximately 1.1 percentage points of the growth came from investments in AI data centers and equipment—the largest single contributor. In other words, removing AI-related investment would significantly reduce the apparent strength of the headline number. Meanwhile, imports surged by 19.7%, while exports declined by 5.7%, dragging down GDP by 3.3 percentage points due to net exports. This indicates that domestic demand is largely fueled by purchases of foreign goods. Most critically, the September PCE inflation rate rose 3.6% year-on-year, with core PCE up 3.1%, far exceeding the Federal Reserve’s 2% target. Real wages are being eroded by rising prices, and household savings rates have fallen to 3.8%—the lowest in four years.
Why is Bessent so eager to promote such a narrative? First, it may serve strategic purposes ahead of the upcoming APEC negotiations: next week’s summit in Shenzhen will feature talks on establishing an AI dialogue mechanism and a framework for reciprocal tariff reductions (approximately $30 billion worth of non-sensitive goods each way). Discrediting others before negotiations is a well-documented tactic used by the U.S. to exert pressure. Second, it provides internal justification: following Republican losses in the midterm elections, the Trump administration seeks to reinforce a narrative of U.S. economic strength to maintain political stability. Third, it aims to consolidate alliances—by casting Europe and the Global South as unreliable, the message subtly suggests that only the United States can be counted on, and others must align with Washington.
Yet while Bessent publicly frames the Chinese economy as weak, his actions reveal a different reality: he is actively advancing economic and trade dialogues with China, including the establishment of separate mechanisms for trade and investment, discussions on $30 billion in reciprocal tariff cuts, and the creation of a channel for AI-related risk management. This contradiction underscores a fundamental truth: the U.S. and Chinese economies are deeply intertwined, mutually dependent, and neither can afford to disengage. The claim of economic weakness, therefore, appears less like an assessment and more like a negotiating tactic.
Original source: toutiao.com/article/1881796298415114/
Disclaimer: The views expressed in this article are those of the author alone.