NEW YORK, November 11, 2026 — U.S. Treasury Secretary Scott Bessent has called for a more balanced economic relationship with China ahead of President Donald Trump’s expected meeting with President Xi Jinping in Shenzhen next week, arguing that Washington should reduce strategic dependence on Chinese supply while avoiding a complete economic break between the world’s two largest economies.

Speaking at the National Committee on U.S.-China Relations gala in New York on November 10, Bessent said the American economy had become too dependent on foreign supply while China had grown increasingly reliant on foreign demand. His proposed direction was reciprocity: the United States should produce more of what it consumes, while China should consume more of what it produces.

“Our objective is to de-risk, not to decouple,” Bessent said in prepared remarks published by the U.S. Treasury on November 11. He described the relationship as one of the most consequential of the century and said cooperation could strengthen both economies without preserving the imbalances that have repeatedly fuelled trade disputes.

Official portrait of U.S. Treasury Secretary Scott Bessent.
U.S. Treasury Secretary Scott Bessent. Photo: U.S. Department of the Treasury; public domain as a U.S. federal government work. Image source and rights record.

Trade Boards And A $30 Billion Tariff Initiative

Bessent said the U.S.-China Board of Trade had reached a consensus to identify more favourable tariff treatment for $30 billion of non-sensitive goods in each direction. He also said the board had launched a working group to address agricultural trade barriers. The separate Board of Investment is intended to provide a structured channel for discussions about market access for American companies and greater predictability for Chinese companies.

The Treasury secretary also referred to China’s earlier commitment to import at least 25 million metric tons of U.S. soybeans and 10 million metric tons of U.S. coal over the next two years. Those commitments are part of a broader set of trade understandings reached during earlier high-level meetings, rather than a new purchase agreement signed at the New York gala.

The two boards were established as part of a wider package of understandings announced after the September 2026 state visit by Xi to the United States. China’s Foreign Ministry said the two governments had agreed to advance the Board of Trade and other mechanisms, pursue a reciprocal tariff-reduction arrangement valued at $30 billion and establish a bilateral AI dialogue. The Chinese account also described the agreements as requiring further implementation by both sides.

The red national flag of the People's Republic of China flying above a snowy mountain landscape.
The national flag of the People’s Republic of China. Photo: Chen Zhao; Creative Commons Attribution 2.0. Image source · CC BY 2.0 licence.

Trump And Xi Prepare For Another High-Level Meeting

The remarks come ahead of the Asia-Pacific Economic Cooperation (APEC) leaders’ meeting in Shenzhen on November 18 and 19. Trump said on November 9 that he expected to meet Xi during the summit. Reuters reported that the planned discussions could cover trade, artificial intelligence, regional security and other strategic issues, although the final agenda has not been publicly settled.

The meeting will take place against the backdrop of a fragile trade truce that is due to expire in January 2027. The Associated Press reported that trade is expected to be a central issue, with Washington pressing Beijing to fulfil previous commitments on agricultural purchases and critical minerals while China continues to raise concerns about U.S. restrictions on its economy and technology sector.

Bessent said the frequency of direct engagement between the two leaders had created an opportunity to manage disagreements. He argued that the two countries could pursue cooperation without pretending that their political systems, national interests or approaches to international challenges were identical.

The United States flag flying outside the U.S. Department of Agriculture building in Washington, D.C.
The U.S. flag outside the Department of Agriculture in Washington, D.C. Photo: Makaristos; released into the public domain worldwide. Image source and rights record.

Washington Presses Beijing On Existing Commitments

The administration’s call for a more balanced relationship is accompanied by continued pressure over the implementation of earlier trade understandings. In a November 6 readout, the Office of the U.S. Trade Representative said Jamieson Greer and Bessent had held a video conference with Chinese Vice Premier He Lifeng. Greer emphasised that China should take concrete action on commitments involving agricultural purchases, rare earths and other critical minerals.

The USTR statement said the administration would continue monitoring compliance while pursuing benefits for American farmers, ranchers, manufacturers and workers. That message shows that Washington’s position combines an interest in maintaining dialogue with an insistence that previous commitments produce measurable results.

China has presented the relationship differently. In its September 26 account of the leaders’ understandings, the Foreign Ministry emphasised mutual respect, fairness and reciprocity, while saying the two sides should implement the outcomes of their economic and trade consultations. Beijing has also objected to unilateral U.S. tariff and technology restrictions, arguing that economic cooperation should proceed on the basis of equality and mutual benefit.

Artificial Intelligence Becomes A New Area For Cooperation

Bessent’s speech also addressed a developing channel for cooperation on advanced artificial intelligence. He said the two countries had begun a dialogue on superintelligence intended to address shared risks, exchange practices for evaluating and testing advanced models before release, and keep human judgment central to the technology.

He added that Washington and Beijing were establishing a direct communication channel through which either side could alert the other to serious incidents involving advanced AI models. The arrangement is intended to reduce the risk of misunderstandings as systems become more capable. It does not mean the two governments have agreed on a common regulatory framework, shared safety standard or unified approach to AI development.

China’s September statement also referred to an AI dialogue and a bilateral communication channel for AI incidents. The two accounts indicate that the idea has been discussed at the government level, but practical details, operating procedures and the scope of information that either side will share remain to be demonstrated.

Chinese Ambassador Also Calls For Reciprocity

Chinese Ambassador to the United States Xie Feng, who also spoke at the New York gala, echoed the language of reciprocity. According to the Associated Press, he said cooperation would benefit both countries while confrontation would harm them. His comments suggest that Beijing is prepared to use the upcoming summit to reinforce the case for stable economic engagement, even as disagreements over trade and technology remain unresolved.

The diplomatic challenge is to translate broad language about fairness and cooperation into decisions that businesses can rely on. Companies need clarity about tariffs, market access, export controls, supply chains and investment rules. Farmers and manufacturers need to know whether purchase commitments will be implemented, while technology firms must navigate restrictions affecting semiconductors, data infrastructure and advanced AI systems.

What To Watch At The Shenzhen Summit

The most immediate test will be whether Trump and Xi can agree on practical steps to extend the trade truce beyond January and make the existing boards more effective. Progress could involve specific agricultural purchase schedules, procedures for resolving non-sensitive trade barriers, clearer investment rules and a timetable for addressing supply-chain concerns involving rare earths and critical minerals.

AI cooperation may produce a parallel diplomatic outcome. Even a limited incident-reporting channel could help the two governments communicate when advanced systems behave unexpectedly or create risks that cross national borders. However, any such arrangement will depend on trust, technical definitions and the willingness of both sides to share information while protecting commercial and national-security interests.

HeadlinesXtra Analysis

Bessent’s language is an attempt to frame U.S.-China economic policy as a search for resilience rather than a campaign to end bilateral commerce. That distinction matters because the two economies remain deeply connected. A complete break would carry costs for manufacturers, consumers and global supply chains, while continued dependence on a narrow set of foreign suppliers can create vulnerabilities during political or security disputes.

The proposed $30 billion in reciprocal tariff treatment is a useful negotiating mechanism, but its impact will depend on the products covered, the actual tariff reductions and how quickly businesses can use the arrangement. The figure should not be mistaken for a comprehensive settlement of the trade relationship. Agricultural purchases, rare-earth access, technology controls and market-entry rules remain separate issues requiring sustained negotiation.

The strongest signal in Bessent’s remarks is the effort to connect economic management with AI risk communication. Competition over advanced computing is intensifying, yet both countries have an interest in avoiding accidents or misunderstandings involving powerful systems. A direct channel could provide practical value even if broader strategic rivalry continues.

For the Shenzhen meeting to produce more than diplomatic reassurance, both governments will need to publish clear commitments, measurable milestones and credible ways to verify implementation. The language of reciprocity can create room for agreement, but it will be judged by what changes for exporters, investors, technology companies and consumers after the leaders leave the summit.

Sources And Further Reading