US Treasury Chief Raises Serious Concerns in Call With China

Then-Treasury Secretary nominee Scott Bessent testifies before the Senate Committee on Finance on Capitol Hill in Washington on Jan. 16, 2025. Madalina Vasiliu/The Epoch Times

U.S. Treasury Secretary Scott Bessent raised “serious concerns” about China’s economic imbalances and “unfair policies” during an introductory call with his Chinese counterpart, the Treasury Department said on Feb. 21.

Bessent emphasized that the Trump administration is committed to “pursue trade and economic policies that protect the American economy, the American worker, and our national security,” the Treasury said in a statement.

According to a summary of the exchange, Bessent told Chinese Vice Premier He Lifeng that Washington is particularly worried about China’s “counternarcotics efforts.”

The two top economic officials agreed to maintain communication moving forward, the Treasury said.

The exchange comes less than three weeks after an additional 10 percent U.S. tariffs on Chinese products came into effect. While announcing the tariff hikes, The White House cited a series of concerns, including trade imbalance and the influx of fentanyl-related drugs into the United States.

President Donald Trump had announced 25 percent tariffs on Mexico and Canada on Feb. 1, but after Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum each had a telephone conversation with Trump, these custom duties were put on hold for 30 days. The tariffs on China took effect on Feb. 4.

Shortly after the extra levies kicked in, the Chinese regime retaliated with numerous measures, including 10 percent tariffs on U.S. coal and liquefied natural gas (LNG), an investigation into Google by its competition watchdog, and new curbs on strategic metals exports.

During the video call with Bessent on Feb. 21, He expressed Beijing’s concerns over the measures recently implemented by the United States, including tariffs on Chinese goods, according to Beijing’s readout issued by state media Xinhua.

The statement characterized the dialogue between He and Bessent as “in-depth,” noting that they addressed issues related to China–U.S. economic relations, though specifics were not disclosed.

China: Most ‘Unbalanced Economy’

Ahead of the exchange, Bessent pointed out that a significant amount of the precursor chemicals used in producing fentanyl originate from China.

“We really want to put a stop to that very quickly,” Bessent told Bloomberg Television on Feb. 20.

The Treasury chief highlighted concerns over China’s reliance on exports for its economic growth, describing the nation as the most “unbalanced economy in the history of the world.” He called on Chinese authorities to rebalance the country’s economy and focus more on consumer spending at home.

“They are suppressing the consumer in favor of the business community,” he said.

Trump said on Feb. 19 that “it’s possible” to make a new trade agreement with Beijing.

The president pointed to his past success in striking a deal with China, saying, “We did a great trade deal with China, great for the farmers, great for the manufacturers.”

“They had to buy $50 billion worth of our product, and we were making them buy it,” Trump told reporters aboard Air Force One, referring to the Phase One trade agreement he signed with Beijing in 2020.