Bessent: “Chinese admit they ignored the rules under Biden” – Announces Major Development

Leave a CommentBessent: “Chinese admit they ignored the rules under Biden” – Announces Major DevelopmentGovernment, White House

Treasury Secretary Scott Bessent has made a startling revelation about China’s behavior regarding the 2020 “Phase One” trade deal, signed during the Trump administration. According to the video above, Bessent stated that Chinese officials admitted in private discussions to disregarding their trade obligations while President Biden was in office. This admission highlights a significant failure in the enforcement of the deal, which was designed to address long-standing trade imbalances between the U.S. and China.

The “Phase One” trade deal required China to purchase an additional $200 billion in U.S. exports over two years, protect intellectual property, and stop forcing American companies to transfer technology. However, reports suggest that China did not meet these commitments, and Bessent’s statement indicates that this was a deliberate choice, driven by the perception that the Biden administration would not enforce the agreement as stringently as the Trump administration had.

This perception contrasts with the Trump era’s approach, which relied heavily on tariffs and tough negotiations to pressure China. Bessent’s criticism of the Biden administration’s lack of enforcement aligns with a broader narrative that Biden’s leadership allowed China to ignore its promises, potentially harming U.S. economic interests. This narrative has gained traction on social media, where users have echoed Bessent’s concerns, suggesting that the U.S. missed a critical opportunity to hold China accountable.

Bessent’s remarks also come at a time when U.S.-China trade relations are under scrutiny. He has described the current tariff levels—145% on U.S. imports from China and 125% on U.S. exports to China—as unsustainable, pointing out that such measures could lead to significant job losses in China.

Significant development

However, there’s been a significant development in U.S.-China trade relations, as announced on May 12, 2025. Following talks in Geneva, the U.S. and China agreed to cap tariffs at 30% for the next 90 days, reducing tariffs from 125% to 10% on most goods, though U.S. duties on Chinese imports linked to fentanyl will remain at 20%. This temporary measure, which Bessent noted benefited from the “equanimity” of the Geneva venue, has sparked market optimism, with Nasdaq futures rising 3.7%, S&P 500 futures up 2.7%, and Dow futures gaining 840 points, reflecting a potential de-escalation in trade tensions.