But Treasury Secretary Scott Bessent said Monday that President Donald Trump will still meet China’s Xi Jinping later this month and is ready to respond “with whatever it takes” to counter China’s export restrictions.
“This is China versus the world,” Bessent said, warning Beijing had “pointed a bazooka at the supply chains and industrial base of the entire free world.”
Getting repetitive
Bessent said Monday the U.S. would respond forcefully if China maintains its restrictions.
“We have plenty of straight brute-force countermeasures we can pull,” he warned.
He cited leverage over semiconductor software exports, access to U.S. financial markets, aircraft components from companies like GE and Honeywell, and even the presence of more than 300,000 Chinese students studying at American universities.
“But we’re willing to do whatever it takes and to adopt whatever posture it takes,” Bessent said. “As President Trump says, we do have more cards.”
The Treasury secretary said the administration aims to rally support from Japan, South Korea, India, Australia, and European allies, many of whom also depend on Chinese refined minerals. The issue is expected to dominate discussions this week in Washington during the annual International Monetary Fund and World Bank meetings, where Bessent said Chinese and American officials will hold lower-level talks.
Siegel, for one, expects the economic fallout to be temporary.
“Once it’s resolved, given all the other good things that are happening, I see no reason why we can’t continue on to new highs,” he said, noting the S&P 500 was already rebounding after Friday’s sell-off.
