Part 4/10:
He outlined that China is currently embroiled in a real estate crisis, attempting to export their economic problems rather than resolve internal issues, which signals vulnerability rather than strength. The U.S. has responded with tariffs, effectively creating a "tariff wall," and the data shows that Chinese manufacturing has been down for half a year despite attempts to diversify trade flows.
Bessant emphasizes that Western economies are uniting against China, with the European Union imposing tariffs of up to 50%, further isolating Beijing. He highlights that recent Chinese attempts to control rare earth minerals—critical components for modern technology—could have global repercussions. The U.S. successfully had these controls postponed for a year, giving policymakers time to prepare.