Bessent Anticipates Boeing Orders During Trump's China Visit

U.S. Treasury Secretary Scott Bessent announced on Thursday that he expects significant Chinese orders for Boeing aircraft during President Donald Trump's visit to Beijing, as reported by Reuters. The anticipated announcement is part of broader discussions aimed at expanding U.S. exports to China.

According to Bessent, the talks will also cover other areas such as energy and agricultural goods, along with non-strategic investment opportunities in the United States. He mentioned that fireworks are among the goods that the U.S. would not seek to reshore, highlighting the focus on maintaining certain export markets.

Bessent proposed forming a 'Board of Trade' to govern bilateral trade and a separate 'Board of Investment' to oversee investments in non-sensitive areas. He dismissed speculation about Trump seeking $1 trillion in investment from China, stating that such figures were unfounded. The new investment board would preview Chinese plans to ensure they do not fall under the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS), which Bessent chairs.

President Trump emphasized his goal to rebalance the trade relationship with China during his meeting with Chinese President Xi Jinping. 'We're focused on getting it into balance,' Bessent said, indicating that this could be achieved by either reducing U.S. imports from China or increasing U.S. exports to China.

Prior to Trump's visit, Bessent held meetings in South Korea with Chinese Vice Premier He Lifeng and South Korean President Lee Jae Myung. These discussions focused on strengthening economic cooperation, particularly in critical minerals, supply chains, and foreign exchange markets, as reported by UPI. The talks were part of the preparatory efforts for the high-stakes summit between Trump and Xi.

The meetings concluded with no immediate summary from either side, but experts suggest that both nations are in a holding pattern ahead of the summit. According to Kim Tae-hwang, a professor of international trade at Myongji University, neither side has strong incentives to make early concessions. The U.S. is unlikely to ease curbs on key technologies like semiconductors, while China, buoyed by resilient growth and trade performance, is under less pressure to offer significant compromises.

During the Beijing summit, leaders are expected to agree on setting up forums to ease mutual trade and investment. China is also anticipated to announce purchases related to Boeing airplanes, American agriculture, and energy. Other topics likely to be discussed include semiconductors, rare earths supplies, and the Iran war.