Scott Bessent Confident Trump-Xi Call Will Break China Trade Impasse: ‘We’ll See Something Very Soon’

As the market focus rests heavily on the progress of the fledgling trade talks between the U.S. and China in a bid to resolve the impasse, President Donald Trump’s administration has sounded out an upbeat tone on the resolution of the impasse. 

Treasury Secretary Scott Bessent weighed in on President Trump’s claim that China has “totally violated its agreement with the US.” In an interview with CBS News aired on Sunday, the federal official said, “I am confident that when President Trump and party Chairman Xi [Jinping] have a call, that this will be ironed out.”

“But the fact that they are withholding some of the products that they agreed to release during our agreement- maybe it's a glitch in the Chinese system, maybe it's intentional,” Bessent said, adding that the Asian country was withholding products that are essential for the industrial supply chains of India and Europe.

The Treasury Secretary also suggested a call between the two heads of state could be imminent. “I believe we'll see something very soon,” he said.

When asked whether there was a conversation between him and his Chinese counterpart or between Commerce Secretary Howard Lutnick and his counterpart, Bessent said, “Well, I think we're going to let the two principals have a conversation, and then everything will stem from that.”

The Trump official also clarified that the U.S. was not looking to “decouple” from China but was in the process of derisking.

Bessent disagreed with JPMorgan CEO Jamie Dimon’s recent statement that China will unlikely bow before U.S. pressure. “The laws of economics and gravity apply to the Chinese economy and the Chinese system, just like everyone else,” he said.

Another Trump official also offered his take on the U.S.-China trade situation in a media appearance on Sunday. 

National Economic Council Director Kevin Hassett, while appearing on ABC News “This Week,” said, “I'm not sure if it's been scheduled at a specific date, but it has been discussed that the two of them will talk about the Geneva agreement which we're all very favorably inclined towards, thinking this is a huge step forward.”

 Hassett, though, was not sure whether the call would happen this week, said, “But my expectation is that both sides have expressed a willingness to talk.”

He confirmed ongoing talks between both sides. “USTR Jamieson Greer, his team, and President Xi's team in China, they're talking every day, trying to move the ball forward on this matter.”

Hassett said the Trump administration has been “focused like a laser beam” on an agreement with China and that discussions will continue this week. “Once that thing's resolved, then we're going to take deals into the Oval that Jamieson Greer and Howard Lutnick have negotiated,” he added.

The Invesco QQQ Trust (QQQ) ETF and the SPDR S&P 500 ETF (SPY) are up 1.7% and 0.9% this year, respectively.

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