Treasury Secretary Scott Bessent said he is discussing a board of investment with China on Thursday to deepen its economic relationship with the U.S., as President Donald Trump tackles trade goals with Chinese leader Xi Jinping in Beijing this week.
A board of investment, Bessent told CNBC in an interview that aired Thursday, will help “decide upfront what are the nonstrategic, nonsensitive areas where it would be possible for the Chinese to invest,” while addressing the security concerns inherent in buddying up with a major geopolitical rival. Administration officials are also discussing a board of trade with Beijing.
His comments come as Trump and Xi hold high-stakes talks on issues including market access for U.S. businesses in China, reopening the Strait of Hormuz and Chinese consumption of American agricultural production. The president flew to China with a host of business executives, including one-time White House employee Elon Musk and Nvidia CEO Jensen Huang.
The White House, which has staked a decidedly mercantilistic approach to foreign policy since Trump returned to the Oval Office last year, sees plenty of economic opportunity in China, the world’s largest exporter of goods.
“There are plenty of things that the Chinese could invest in in the U.S.,” Bessent said. “And we’re trying to push the same thing in the U.S. President Trump today told Xi Jinping that he wants to open up China. And China should open up.”
One of the president’s goals, Bessent stressed, was resetting what the White House sees as a major trade imbalance between the two economies.
“He’s laser-focused on getting it into balance,” he said. “That’s the goal here. And that can be done one of two ways: Either the U.S. receives fewer imports from China or we sell more to China. And we’re trying to balance that out.”
Bessent also said Thursday that China would work with Iran to reopen the Strait of Hormuz, through which 20 percent of the world’s crude oil flows.
“It’s very much in their interest to get the strait reopened,” Bessent said. “I think they will be working behind the scenes to the extent anyone has any say over the Iranian leadership.”