Treasury Secretary Scott Bessent said Wednesday that the Trump administration will not allow stock market swings to dictate its trade policy toward China. Speaking at CNBC’s Invest in America Forum in Washington, D.C., Bessent directly challenged a Wall Street Journal report claiming that Chinese President Xi Jinping is betting market volatility will force President Donald Trump to return to the negotiating table.
Bessent dismissed the report as Chinese propaganda, saying it echoed narratives from the Chinese Communist Party. “They’re taking CCP dictation,” Bessent said of the Journal’s reporting. He emphasized that President Trump supports a strong stock market, but not at the expense of sound economic policy.
“If we have to take strong measures against the Chinese, it won’t be because the stock [market is down] or we won’t negotiate because the stock market’s going down. We will negotiate because we are doing what is best economically for the U.S.,” Bessent stated.
The comments come after a volatile week for markets. On Friday, stocks dropped sharply following President Trump’s threat to impose a 100 percent tariff on Chinese imports and announce new export restrictions on key U.S. software technologies. The move was a response to China’s recent limits on rare earth mineral exports, which are critical for advanced U.S. manufacturing.
Although Trump’s tone appeared to soften briefly over the weekend, resulting in a market rebound on Monday, volatility returned Tuesday after the president issued another warning accusing Beijing of “economic hostility” and failing to follow through on promises to purchase American soybeans.
When asked whether the administration’s tough stance on China was influenced by stock market reactions, Bessent firmly rejected the notion. “President Trump, like me, believes that the high stock market is a result of good policies,” he said. “It’s the policies that are driving the economy, not the market dictating policy.”
President Trump and Xi Jinping are still scheduled to meet later this month. According to Bessent, their relationship remains strong, but any negotiations will be on American terms—not in response to market fears or Chinese pressure.
