US Treasury Secretary Scott Bessent on Monday (July 21) suggested that China’s trade with Russia — including the purchase of Russian and Iranian oil — may dominate the next round of talks between the two countries. He said the Asian giant’s overcapacity will also be up for discussion.
In an interview with CNBC, he hinted that the US-China talks could resume “in the near future.”
While China’s overcapacity is always on the agenda, Bessent seemed to downplay it for the time being. “Trade is in a good place… And I think now we can start talking about other things,” he said. “The Chinese, unfortunately, are very large purchasers of sanctioned Iranian oil, sanctioned Russian oil — so we could start discussing that,” Bessent added.
Also Read: China warns EU over sanctions on two banks ahead of trade summit
This comes after US President Donald Trump’s assertions that he might impose higher duties on any country purchasing sanctioned Russian energy.
“Any country who buys sanctioned Russian oil is going to be subject to up to 100% secondary tariffs… President Trump has changed the conversation here and I would urge our European allies, who have talked a big game, to follow us if we implement these secondary tariffs,” Bessent said, adding that tariffs can be a means to a political end.
At the same time, he said, the US is in no rush to make deals just for the sake of making deals. He said the focus is more on ensuring quality trade agreements even as the August 1 tariff deadline looms for most countries.
A meeting between Trump and Chinese President Xi Jinping might take place before or during the Asia-Pacific Economic Cooperation (APEC) summit between October 30 and November 1, according to South China Morning Post.
First Published: Jul 21, 2025 7:45 PM IS
