The U.S. Treasury Secretary Says Sino-U.S. Relations Have Entered a Stable Phase
U.S. Treasury Secretary Bessent stated on the 3rd that after years of tension and turbulence, relations between the United States and China have entered a "stable" phase. Recent trade cooperation has yielded tangible results, with China agreeing to purchase 200 Boeing passenger aircraft—a significant symbol of renewed economic and trade ties and one of the key achievements of President Trump’s administration's economic policy toward China.
Bessent said on Wednesday that a series of trade agreements reached during President Trump’s recent visit to Beijing were highly significant. The U.S. will continue monitoring whether China fulfills its commitments, particularly regarding the expansion of purchases of American products.
He noted that when Chinese leaders visit the United States this autumn, both sides are expected to further review these outcomes, with the Boeing aircraft procurement deal serving as an important indicator.
"We will assess whether China follows through on its commitment to increase purchases of Boeing aircraft," Bessent said.
According to currently disclosed details, China’s agreement to buy 200 aircraft not only exceeds Boeing’s original target of 150 planes but has also immediately boosted market confidence. Following the announcement, Boeing’s stock rose by approximately 1% to 3% in pre-market trading.
Analysts believe this transaction is more than just a commercial order—it carries substantial political and diplomatic significance.
In recent years, Sino-U.S. relations have faced continuous pressure over issues such as trade, technology, geopolitics, and supply chain restructuring, with bilateral trade tensions once escalating sharply. China’s substantial increase in purchasing large U.S. goods is now seen as a crucial signal that both sides are seeking to stabilize their relationship.
Bessent has repeatedly summarized the direction of Sino-U.S. trade cooperation using the “Three Bs”: beans (Beans), beef (Beef), and Boeing (Boeing). He argues these three categories represent America’s most competitive exports with high demand from China and are key tools for reducing long-term trade imbalances between the two nations.
From Bessent’s perspective, the Boeing order serves a dual purpose.
On one hand, increasing China’s imports of high-value-added American products helps narrow the persistent U.S. trade deficit with China. On the other, both sides can point to this deal as concrete evidence of progress in economic and trade cooperation—offering proof of success for domestic economic and foreign policies.
However, aviation industry experts caution that aircraft orders differ significantly from actual deliveries.
Historically, major aircraft orders have often been adjusted, delayed, or renegotiated later. Therefore, the current commitment of 200 aircraft represents a purchase intention rather than a fixed delivery schedule. Future developments will depend on Chinese airlines’ demand, market conditions, and changes in bilateral political dynamics.
Nonetheless, the market generally believes that China’s willingness to increase its purchase volume by more than one-third beyond Boeing’s initial expectations indicates genuine commercial demand—not merely symbolic diplomatic gestures.
Aside from the aviation sector, recent trade negotiations between the two sides have also covered energy and agricultural products.
Bessent revealed that the U.S. and China are discussing establishing a joint “Board of Trade,” aiming to institutionalize mechanisms for ongoing business consultations and dispute management, thereby reducing the risk of major fluctuations in economic and trade relations driven by political factors in the past.
Yet despite expressing a relatively optimistic outlook on bilateral cooperation, Bessent still criticized China’s economic policies.
Analysts note that even as relations improve, U.S. concerns about China’s industrial policies remain unresolved. Issues such as technological subsidies, manufacturing competition, and supply chain security are likely to remain focal points in future negotiations.
On Wednesday, Bessent also defended the Trump administration’s fiscal budget proposal for 2027 before the Senate Committee on Finance, further outlining the overall economic strategy for Trump’s second term.
He emphasized that the Trump administration’s economic policy rests on three pillars: tax cuts, trade, and deregulation, with trade arrangements with China being a central component of this broader strategy.
"The President is determined to open up more markets for American goods and services while rebuilding America’s manufacturing capacity," Bessent said. He views China’s increased purchases of Boeing aircraft and other American products as clear manifestations of this policy’s success.
Observers note that Bessent’s frequent emphasis recently on China’s acquisition of Boeing aircraft and the stabilization of Sino-U.S. relations reflects the Trump administration’s effort to generate tangible economic gains through trade cooperation while maintaining strategic competition with China.
In Washington’s view, if China continues expanding its purchases of American agricultural products, energy goods, and high-tech manufactured items, it would not only help reduce the trade deficit but also provide concrete achievements for the Trump administration.
However, the market remains attentive to whether this cooperative momentum can extend into more sensitive areas such as technology, semiconductors, and national security. Given that these issues touch upon core national interests, even with improvements in trade relations, the overarching competitive landscape between the two countries is unlikely to change significantly in the short term.
Source: rfi
Original: toutiao.com/article/1867041193902144/
Disclaimer: This article represents the personal views of the author