At the BTG Pactual CEO Conference in Sao Paolo, Brazil on Tuesday, U.S. Treasury Secretary Scott Bessent characterized the current state of U.S.-China relations as "a very comfortable place," while setting out the administration's posture toward Beijing.
"We are going to be rivals, but we want the rivalry to be fair," Bessent said, emphasizing a competitive stance that still aims to preserve constructive interaction. He added: "We do not want to decouple from China, but we do need to de-risk," signaling a policy preference for reducing vulnerabilities without pursuing a full disengagement.
In his remarks, Bessent conveyed cautious optimism about the prospects for productive relations with China, asserting that "competition keeps you from stagnating." The comment framed competition as an engine for progress while underscoring the desire for a regulated rivalry.
Beyond U.S.-China dynamics, the Treasury Secretary touched briefly on other global security questions. On the Russia-Ukraine conflict, he described himself as "optimistic" about developments. Regarding Iran, Bessent adopted a more reserved posture, saying simply: "we’ll see what happens with Iran."
The comments came in a concise appearance at the conference and focused on presenting a balance between maintaining economic ties and mitigating risks tied to strategic competition. Bessent's language underscores a policy approach that aims to navigate competition without pursuing separation.
Contextual takeaways - Bessent outlined three linked themes: a stable but competitive U.S.-China relationship described as "a very comfortable place," an explicit rejection of full decoupling in favor of de-risking, and cautious optimism about other international tensions. His brief references to Russia-Ukraine and Iran were limited to the single-word assessments quoted above.
The remarks were delivered at a high-profile financial industry gathering in Sao Paolo and were succinct, with the Treasury Secretary focusing on broad principles rather than detailed policy prescriptions.