United States (US) Treasury Secretary Scott Bessent said on Wednesday that China was planning to erect new trade barriers and added that they don't want to escalate, per Reuters.

Key takeaways

"This is China versus the world."

"Bureaucrats in China cannot manage the supply chain, manufacturing process for the rest of world."

"US has lots of levers that it can pull on China trade."

"We don't want to decouple from China."

"We have semiconductors, aircraft engines, many minerals that china needs for its supply chain."

"We are trying to bring back five to seven strategic industries, including ship building, rare earths."

"There have been many outreaches to Chinese delegation."

"We are working on a meeting, President Trump is a go on meeting with Xi."

"Trust between Trump and Xi is a reason that this hasn't escalated."

"Stock market won't affect negotiations with China."

"When you face a non-market economy like China, you need industrial policy."

Market reaction

Following these comments, the US Dollar (USD) Index recovers slightly from session lows and was last seen losing 0.07% on the day at 98.96.