China will make concessions first! US Treasury Secretary Bessent: Europe’s anti-capitalism and excessive regulation, global capital still loves the United States the most.

U.S. Treasury Secretary Scott Bessent was interviewed this morning on 4/29 regarding the China-U.S. trade negotiations, global capital flows, and the economic situation in Europe. He emphasized that the global capital still views the U.S. as the top choice and further stated that China must make concessions first if it wants to reduce tensions. Previously, there were reports that Bessent had said in a private meeting at JP Morgan ( that "things will cool down soon," which caused the market to experience a big pump. In response, Bessent clarified that he never disclosed anything beyond what was said in public, and the market should not overinterpret.

Progress in US-China trade negotiations, Bessant: China must make concessions first.

Bessent was the first to respond to the current progress of the US-China negotiations. He stated that there is still ongoing communication between the two sides, but he emphasized:

"China should make concessions because their exports to the United States are five times what we export to China."

He pointed out that the 125% to 145% tariff standards imposed by the United States would be unbearable for China, implying that the U.S. currently holds the upper hand in negotiations.

Global trade negotiation progress, Bessent: The United States has a "standard version contract".

In response to whether the United States has a set of standards that could speed up negotiations, Bessent said that there is indeed a standard version, but it will not be made public.

He emphasized that, besides China being a complex case, another 17 important Asia-Pacific trading partners have successively proposed "very sincere" tax reduction proposals, which the United States is evaluating one by one.

Criticizing the Biden administration for worsening the situation, Trump rewrites the trade landscape as a victory.

Bessent mentioned that seeing the conditions proposed by various countries made him unable to help but exclaim, "How did we get to this point?"

He believes that it is not that these countries are too tough, but rather that the past Biden administration put the United States at a disadvantage, and now the Trump administration is working hard to turn the situation around, which is a big victory.

Where the global funds go, Bessent: the United States is still the first choice.

Regarding concerns from the outside about the decline in the value of American brands and the possibility of capital flowing to other regions.

Bessent cited the views of well-known hedge fund manager Kyle Bass, pointing out that the European economic system is "anti-growth, anti-capitalist, heavily taxed, and overly regulated."

"The European Stoxx 50 index has an average annual return of less than 2% over the past 20 years, while the US S&P 500 has exceeded 10%."

He emphasized: "If you don't invest in the United States, where else can you go? Europe is clearly not the answer." He also mentioned that the United States is committed to tax system stability, trade fairness, and removing excessive regulations to ensure that capital continues to flow into the United States.

U.S. Treasury Secretary cites remarks from renowned hedge fund manager Kyle Bass to dissect Europe's predicament, with high tariffs and fears of euro appreciation.

Bessent further analyzed that there are a large number of trade barriers within Europe:

Commodity tariff 50%

Service items 100%, self-limitation is serious.

He predicts that due to the excessive appreciation of the euro, the European Central Bank )ECB( is likely to be forced to drop interest rates in an attempt to suppress the euro exchange rate, contrasting with the strong dollar policy of the United States.

The risk in China is increasing, and capital flight may become a hidden concern.

Besides Europe, Bessent also mentioned that China's recent actions have raised concerns in the capital markets. He cited an example where China recently claimed sovereignty over certain Philippine islands, an action that would make foreign investors hesitate: "Who would dare to put money into such a place?"

The picture shows China and the Philippines competing to plant flags on the Zhongnanhai islet to assert sovereignty and clarify the "private meeting outburst" incident, Bessent: It is a market misunderstanding.

Media previously reported that Bessent mentioned in a private meeting at JP Morgan ) that "it will cool down soon," which led to a temporary big pump in the market.

Bessent responded: "What I said at that meeting was already mentioned in the media 72 hours ago." He also added that after he held a press conference, the market actually dropped, implying that the fluctuations were not caused by him.

Still optimistic about the US-China situation, China's subsidy selling model won't last long.

Finally, Bessent reiterated that although negotiations with China are complex, he believes: "China relies on government subsidies for its products and low-priced dumping into the United States; this model won't last long." He is confident that ultimately, China will make the first concession and take the initiative to negotiate.

This article states that China will make concessions first! US Treasury Secretary Bessent: Europe’s anti-capitalism and excessive regulation, global funds still prefer the US. First appeared in Chain News ABMedia.