US Treasury Secretary defends Trump policies, plans meeting with Chinese official

U.S. Treasury Secretary Scott Bessent has publicly defended the economic policies of former President Donald Trump, while also announcing plans to meet with Chinese Vice Premier He Lifeng. This meeting forms part of ongoing diplomatic engagements between the United States and China, focusing on trade and strategic discussions. The issues on the table include rare earths, agricultural goods, and AI safety, reflecting the complex nature of the bilateral relationship. The upcoming meeting is viewed as a crucial step in managing the tense yet actively negotiated U.S.-China relationship. Key Takeaways Bessent’s defense of Trump’s economic policies and planned meeting with a Chinese official suggests a potential improvement in U.S.-China relations. Market pricing indicates a strong likelihood of Xi Jinping visiting the U.S. before the end of 2026, with the December 31 market currently priced at 94.6% YES. The announcement of the meeting appears to have contributed to the increased probability of a U.S. visit by Xi Jinping, as reflected in recent market movements. What to Watch Observers should monitor the outcomes of Bessent’s meeting with He Lifeng for any announcements that could furth...