Part 8/9:
Bessent's critical remarks highlighted China's economic imbalances, the prioritization of military expenditure over economic stability, and failure to meet agricultural purchase commitments stemming from a prior trade agreement with the U.S. His comments reflect the current understanding that China's economy is grappling with prolonged deflation, with forecasts indicating it could be the longest stretch of deflation since the 1960s.
Bessent is expected to take a more stringent approach towards U.S.-China relations, particularly on trade discrepancies and China's management of its own economy. His statements portray an emerging tough stance ahead of strategic decisions that will shape the economic relationship between the two nations for years to come.