Besent in CNBC Interview: "Gradual Imposition of Tariffs"
Assessment That There Is Room for Negotiation with China
In WSJ Interview: "Fulfilling Tax Cut Pledge Is Top Priority"
Scott Bessent, CEO of hedge fund Key Square Group, has been appointed as the U.S. Treasury Secretary in the upcoming Donald Trump administration, and there is an analysis that this could relieve the pressure on China, which has been stifled by U.S. tariff barriers. With Bessent, who is relatively moderate on tariff policies, taking office as the economic chief of the United States, it is evaluated that China now has room to negotiate with the U.S.
Bloomberg News highlighted Bessent's remarks on the 24th (local time), stating, "If Bessent is appointed Treasury Secretary, China may gain some leeway regarding tariffs." In an interview with CNBC shortly after the presidential election, Bessent said, "I will do whatever Donald Trump asks," but also suggested "gradually imposing tariffs." This has led to speculation that Bessent, who has supported Trump’s tariff policies, will tone down the policies to minimize market shocks such as inflation concerns.
John Gong, a professor at Beijing International Business and Economics University who has worked as a consultant for the Chinese Ministry of Commerce, said, "Wall Street has taken the most important position in the Trump administration," and evaluated, "This is good news for Beijing." While the new administration’s diplomatic and security team is filled with hardliners against China, including Senator Marco Rubio nominated as Secretary of State and Congressman Mike Waltz appointed as White House National Security Advisor, it is diagnosed that Bessent could play a mediating role within the cabinet.
However, Amy Celico, senior director for China at the U.S. Trade Representative (USTR), said, "If Bessent acts as a potential communication channel with the Chinese government, both sides will have some breathing room," but dismissed the idea that "everything will proceed smoothly."
Bessent is one of the figures who have pointed out the deliberate devaluation of the Chinese yuan. At a conference last June, he said, "They (China) have conducted a large-scale devaluation and depreciated labor and real estate," adding, "The relationship between the yuan and the dollar is an issue we need to investigate." Considering that the U.S. designated China as a currency manipulator in 2019 during Trump’s first term, there is also a possibility that sanctions excluding Chinese companies from competing for U.S. federal contracts could be reinstated under the next administration.
In an interview with Bloomberg last August, Bessent also described China as a military and economic threat to the U.S. He urged immediate onshoring of pharmaceuticals and exploration of new rare earth supply sources to replace China, saying, "Who would have known that a significant portion of the key ingredients in our pharmaceutical industry come from China?"
In an interview with the Wall Street Journal (WSJ) on the same day, Bessent stated that if appointed Treasury Secretary, his policy priority would be to implement the various tax cut promises made by President-elect Trump. Previously, Trump had pledged to make permanent the income tax cuts from his first term, including exemptions on tips, overtime pay, and Social Security benefits. Bessent also added that maintaining the dollar as the world’s reserve currency, including through tariffs and government spending cuts, would be a focus.
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