Benson: U.S. Trade Team to Meet with China, Denies Trade Deal Covers Chinese Investment in U.S.

U.S. Treasury Secretary Benson denied that any U.S.-China trade agreement could include a provision regarding Chinese investment in the United States, a statement that narrows the options for resolving the current dispute between the two countries.

On the 12th, in an interview with Fox Business Channel, Benson was asked whether China would, like Japan, South Korea, and the EU, pledge billions of dollars in investment as part of a trade deal.

Benson replied: "My view is no. Because a lot of those acquisitions or the funds from those acquisitions would flow into key industries that we need to onshore (in the U.S.), many of which need to be brought back from China."

Whether it’s semiconductors, rare earth magnets, pharmaceuticals, or steel, Benson said: "My feeling is that this (Chinese investment in the U.S.) will not happen."

Bloomberg analyzed that Benson's remarks indicate U.S.-China competition on a range of issues, with technology and AI drawing the most attention. U.S. President Trump has extended the tariff truce with China by 90 days to early November, aiming to stabilize trade relations between the world's two largest economies and give both sides more time to resolve trade and economic differences, thereby paving the way for a meeting between the two leaders.

On the other hand, Benson also said during the interview that the U.S. trade negotiation team will meet again with Chinese representatives in two to three months to discuss the future economic relationship between the two countries.

Benson also said that Chinese President Xi Jinping has invited President Trump to visit China, but no arrangements have been made yet: "There is no date, and the President has not agreed."

Last week, Trump told CNBC that the U.S. and China are very close to reaching a trade deal, and if a deal is reached, he would meet Xi Jinping before the end of this year.

Benson also said on Fox Business Channel that the U.S. needs to see, over the next few months, quarters, or even a year, progress from China in cracking down on fentanyl smuggling before considering lowering tariffs on China.

Fentanyl is the leading cause of death among Americans due to drug overdose. Washington accuses Beijing of failing to curb the flow of fentanyl precursor chemicals into the U.S., while Beijing defends its anti-drug record and accuses Washington of "blackmailing" China over the fentanyl issue.