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Washington D.C. - U.S.-China trade negotiations have hit a snag, according to Treasury Secretary Scott Bessent, who told Fox News in an exclusive interview that the talks are “a bit stalled” and require direct intervention from President Donald Trump and President Xi Jinping. The comments come amidst ongoing concerns about the world’s two largest economies and the potential for further escalation in trade disputes.

Bessent’s remarks, made Thursday local time, highlight the fragility of the ongoing negotiations aimed at resolving a long-standing trade war that has impacted businesses and consumers on both sides of the Pacific. The trade war, characterized by reciprocal tariffs on billions of dollars worth of goods, has disrupted global supply chains and fueled economic uncertainty.

“I think the negotiations are a bit stalled,” Bessent stated. “And I think we’re going to need to see the two leaders speak directly to get this back on track. It’s pretty clear that the negotiators haven't been able to bridge the gap.” He emphasized the need for leadership-level engagement to overcome the current impasse.

The Sticking Points: What's Holding Up the Deal?

While Bessent didn't detail the specific areas of disagreement, analysts suggest several key issues remain unresolved. These include:

• Intellectual Property Protection: China has long been accused of inadequate protection of U.S. intellectual property, a major sticking point for American businesses.
• Forced Technology Transfers: Concerns persist regarding China’s pressure on foreign companies to transfer technology in exchange for market access.
• State Subsidies: U.S. officials have criticized China's extensive state subsidies to its domestic industries, arguing that they create an unfair playing field.
• Agricultural Purchases: The initial trade deal included commitments from China to purchase substantial amounts of U.S. agricultural products, but concerns have arisen about whether these targets are being met.

Impact on the Global Economy

The stalled trade talks have broader implications for the global economy. The trade war has already contributed to slower economic growth worldwide, and further escalation could trigger a more significant downturn. Uncertainty surrounding trade policy also discourages investment and business expansion.

Looking Ahead: Will Trump and Xi Intervene?

The prospect of a direct conversation between Trump and Xi offers a glimmer of hope for a resolution. However, the timing and content of such a discussion remain uncertain. Analysts suggest that both leaders face domestic political pressures that could complicate any potential deal.

The situation underscores the complex and often unpredictable nature of U.S.-China relations. As the world’s two largest economies, the relationship between the United States and China will continue to shape the global economic landscape for years to come. The coming weeks and months will be crucial in determining whether the trade war can be de-escalated and a more stable economic relationship can be forged.

Follow us for continued updates on this developing story.