Trump's Big China Lie Revealed

CNBC Interview Focuses on U.S.-China Trade Tensions

CNBC's Sara Eisen conducted an interview with Treasury Secretary Scott Bessent on Monday, May 5, during which she questioned him about any advancements in discussions aimed at alleviating the significant trade tariffs that were initially imposed on China by President Donald Trump and his team.
Eisen directly inquired about the lack of apparent progress, stating, "But China is key. I know you set it aside. And you're heavily involved here. You have said they need to de-escalate and start that process for us to get going on trade talks. Have they made any effort at this point?"
Despite the president's recent mixed signals on a resolution with the Communist nation, the Treasury Secretary revealed that matters may not be as cogent as Trump has let on. 
Here's what's happening. 
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Secretary Bessent's Perspective on Potential Progress

Secretary Scott Bessent suggested the possibility of movement in the near future, remarking, "I think we could see substantial progress in the coming weeks. We will see that, as I think it's Stein's Law, that which is not sustainable doesn't continue. So, 145 percent, 125 percent tariff levels are the equivalent of an embargo." 
Bessent further elaborated on the economic implications, stating, "And we're reading every day what's happening with factories in China. And from an academic point of view, I can tell you that the history of trade battles, we are the deficit country. The surplus country always has the most to lose."
Eisen pressed for specifics on what the U.S. is seeking and if negotiations are underway by asking, "Right. So, they need to make more gestures? What is it that you're looking for? And is that happening? Is there a negotiation about the negotiation?"
Bessent responded, "Yes, we will see over the coming weeks. And we will see what the President wants to accept."

Fentanyl Precursor Issue Raised

Sara Eisen continued to probe on specific areas of potential discussion, asking, "Right. I mean, have they offered anything on the fentanyl, for instance, precursor ingredients?"
Scott Bessent addressed this concern, stating, "It's only what they have said publicly. So and I can tell you that these precursor fentanyl drugs are a real problem. There are a lot of Chinese companies. At Treasury, we have the ability to do a lot of financial surveillance. And we see Chinese corporations that are linked with the Mexican cartels. And that's got to stop. That's got to stop. Like, what is the price for these hundreds of thousands of fentanyl deaths that we have, the families that are left behind, and then the lives that are ruined?"

China's Stated Position on Direct Talks

In contrast to Scott Bessent's cautious optimism, China has publicly denied direct engagement in trade talks. 
Chinese Foreign Ministry spokesman Guo Jiakun asserted at a press conference last week, "Let me make it clear one more time that China and the U.S. are not engaged in any consultation or negotiation on tariffs."

China's Acknowledgment of U.S. Overtures

Despite the denial, there was a slight shift in China's tone late last week. 
China did say it is "evaluating" overtures from the U.S. to start talks, according to China's commerce ministry on Friday, May 2, the Associated Press reported.
"The U.S. has recently taken the initiative on many occasions to convey information to China through relevant parties, saying it hopes to talk with China," the Ministry shared.