Treasury Secretary Bessent says China's escalation was 'big mistake,' country playing with 'losing hand'

[BumRushDaShow]

Source: CNBC

Published Tue, Apr 8 2025 7:22 AM EDT Updated 5 Hours Ago


Treasury Secretary Scott Bessent said Tuesday the U.S. holds a substantial advantage over China as the two nations exchange threats in a burgeoning trade war.

“I think it was a big mistake, this Chinese escalation, because they’re playing with a pair of twos,” Bessent said during an interview on CNBC’s “Squawk Box.” “What do we lose by the Chinese raising tariffs on us? We export one-fifth to them of what they export to us, so that is a losing hand for them.”

The comments come a day ahead of the U.S. raising its duties on China and dozens of other nations as part of so-called reciprocal tariffs whose purpose, Bessent said, is to bring trading partners to the negotiating table and jobs back to the U.S.

So far, he said Japan has been at the forefront of countries eager to negotiate, and the White House expects a multitude of others.

Read more: https://www.cnbc.com/2025/04/08/treasury-secretary-bessent-says-chinas-escalation-was-big-mistake-country-playing-with-losing-hand.html

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"...We export one-fifth to them of what they export to us, so that is a losing hand for them.”

When they sell most of the manufactured goods that we buy, we have no "advantage". Someone needs to pull out the hook and get him off the stage.

[NoMoreRepugs]

1. bASSent was supposed to be the smart guy in the room. He does not understand the resolve of the Chinese.

[patphil]

2. I don't think Bessent understands the concept of saving face.

China is already a dictatorship, and can weather an economic storm easier than the US can.
They're not ever going to get voted out of office.

[truthisfreedom]

3. Clearly, it's all a game to the republicans

They have no grip on reality.

[mwb970]

4. THEY are playing with a "losing hand".

[3Hotdogs]

9. Yeah, but at least these guys got cards.

Z. didn't even have no cards so he shouldn't'a tried to get into the game.

[ImNotGod]

5. China is going to spank the US hard and send US to bed without any supper. nt

[Evolve Dammit]

6. The ignorance and arrogance is going to hurt us big time. The world economy was fine. FAFO?? Amateur billionaires

[Irish_Dem]

7. China holds $800 Billion is US debt in the form of Treasury notes.

If they sell this debt, there could be some disruption in the US economy?
This is a card China holds?

[BadgerKid]

8. April 2024, foreign countries own approximately $7.9 trillion in Treasurys -- or 22.9% of total US debt

https://usafacts.org/articles/which-countries-own-the-most-us-debt/

So around 1/5th of debt. it seems like a small chunk.

[Irish_Dem]

11. Yes but when the shit hits the fan economy wise, even the smaller pieces begin to matter.

[IbogaProject]

15. What matters is the amount traded each week

These are held and the active market is much smaller compared to the total face value. This will start to have problems, but that would be the endgame as they want to get their money back from them.

[BumRushDaShow]

13. They are on the "lower" end of the foreign holdings

(from here - https://www.visualcapitalist.com/charted-heres-who-owns-u-s-debt/)

But it is a chunk!

[LudwigPastorius]

10. Xi may just up and decide, "You know what? Fuck it." and use this opportunity to invade Taiwan.

Now that Trump has put the U.S. economy on its heels, Xi may want to see how long he lasts by going all in.

[Irish_Dem]

12. What do you think Trump would do in this scenario?

[LudwigPastorius]

14. I honestly don't know.

It's not the war he wants. He wants an "easy" war (Panama).

If I had to bet, I'd say he orders troops to defend Taiwan because he'll view an invasion by China as a challenge to his ego.

[Irish_Dem]

16. Trump could order troops to Taiwan, then if China gives him something, he will turn Taiwan over to China.

[LudwigPastorius]

17. Absolutely possible.

[sinkingfeeling]

18. The Secretary of the Treasury was impressed by the number of trades (sell offs) that took place last week.

Somehow, I think China holding our debt (Treasury Securities to the tune of around $770 Billion) gives them a pretty good hand.