Trump aide says Washington won’t soften Beijing trade stance despite market volatility

His comments came after The Wall Street Journal reported that Beijing believes a potential market meltdown could force President Donald Trump back to the negotiating table. The report cited Chinese officials close to decision-making circles, claiming President Xi Jinping was “betting that the US economy can’t absorb a prolonged trade conflict.”

Bessent dismissed the article as “terrible,” accusing the newspaper of taking “CCP dictation.”

The remarks came amid heightened volatility in financial markets following Trump’s renewed tariff threats. Stocks plunged last Friday after Trump said he would raise tariffs on Chinese goods in response to Beijing’s new export controls on rare earth minerals — materials crucial to high-tech manufacturing.

Trump later appeared to soften his tone, prompting a brief rebound on Monday, though markets remained jittery as trade tensions persisted. On Tuesday, major US indexes fell sharply toward the close after Trump accused Beijing of “economic hostility” for not purchasing American soybeans.

Bessent stressed that while Trump “likes a high stock market,” he believes it reflects sound policy decisions rather than market manipulation. “It’s the policies that we’re talking about here today, in terms of this capex boom,” he said, referring to the surge in investment driven by US advances in artificial intelligence and manufacturing.