Treasury Sec. Bessent says China, U.S. could do big trade deal

“If they want to rebalance, let’s do it together,” Bessent said during an appearance at the Institute of International Trade and Finance in Washington, D.C.

“This is an incredible opportunity. I think if Bridgewater founder Ray Dalio were to write something, he could call it a beautiful rebalancing.

But Bessent, in an address to the group, also called out the World Bank for lending to nations that have advanced economic growth, including China.

He suggested the bank stop lending to China.

“The World Bank continues to lend every year to countries that have met the criteria to graduate from World Bank borrowing,” Bessent said. “There is no justification for this continued lending. It siphons off resources from higher priorities and crowds out the development of private markets. It also disincentivizes countries’ efforts to move away from dependency on the World Bank and toward job-rich, private sector-led growth.”

Bessent added: “Going forward, the Bank must set firm graduation timelines for countries that have long since met the graduation criteria. Treating China — the second-largest economy in the world — as a ‘developing country’ is absurd.

“While it has been at the expense of many Western markets, China’s rise has been rapid and impressive,” he said. “If China wants to play a role in the global economy commensurate with its actual importance, then the country needs to graduate up, we welcome that.”

— CNBC’s Erin Doherty contributed to this story.

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