The secretary of the Treasury, Scott Bessent, said that Beijing has the choice of knowing if he must be a reliable partner with the rest of the world, reiterating that China must move to an economy more directed by consumption to facilitate global imbalances.
“They want either a reliable partner of the rest of the world, or they don’t do it,” said Bessent via the video link to the American Swiss Foundation Leadership Summit in Zurich on Tuesday.
“They are in the middle of a great property – I will not be alarmist and I will say the crisis – but a large real estate construction and the way for them to stabilize their economy does not consist in exporting deflation and excess products to the rest of the world,” he said. “The way to do so is to cross a level of budgetary stimulation and stop manufacturing and put yourself on a solid basis for the consumption economy.”
Bessent did not give a possible call between President Donald Trump and President Xi Jinping, which the White House officials have indicated are in preparation.
The two largest economies in the world are pointing out of fingers for violating the terms of an agreement they announced three weeks ago in Geneva on break from the Tit-For-Tat prices until mid-August to give time to play.
Trump “wants the United States to become more a manufacturing economy,” said Bessent. The U..S tries to remain a destination for foreign and interior investment with tax reductions, rebalancing exchanges and deregulation, adding that precision manufacturing is one of the objectives of the Trump administration, he said.
Bessent also said that he saw unexploited potential for Switzerland and the United States to collaborate more on artificial intelligence and financial services. He said US officials will continue to work with their Swiss counterparts to rationalize global financial regulations, modernize capital requirements and continue to engage with each other on key macroeconomic issues.
Extension of July 9
Switzerland is one of several countries which are trying to negotiate a bilateral trade agreement with the United States to avoid an increase in the reciprocal rate of Trump of 10% at a higher level designated on April 2 – 31% in the case of Switzerland – when a 90 -day stay expires on July 9.
Speaking earlier at the same forum, the senior Swiss commerce Helene Budliger said that the United States said the prices have declared that prices will remain at its current 10% level instead of going to 31%, even if negotiations extend to July 9.
Switzerland has been informed “on several occasions”, both by the secretary besides and the representative of American trade Jamieson Greer, that the moment would be extended, “as long as there is a perception that we negotiate in a good faith-which is the only way to negotiate Switzerland,” she told Bloomberg Television.
Swiss President Karin Keller-Sutter had previously declared that he was “clear” that the deadline would be moved as long as the talks continue, but there was no American confirmation for this. Last week, the government of Switzerland signed a negotiation mandate which sketches a compromise concerning the reduction of prices for agricultural goods that the country does not produce significantly.
Budliger added that the two parties began “a fairly detailed conversation on what a British style agreement could look like between the United States and Switzerland”. There are “relatively concrete ideas” on the table, she said.
She also said that Switzerland suffered from a global overproduction of steel with the United States
This story was initially presented on Fortune.com
