China hits back at US and accuses Trump of breaching deal

Scott Bessent, the US Treasury Secretary, used his appearance at the American Swiss Foundation Leadership Summit in Zurich on Tuesday to send a direct warning to China, saying the country must choose between global cooperation or deeper economic isolation.

Speaking via video, Scott said, “China has a choice to make: be a reliable partner to the global community or deal with the consequences.” He emphasized that Beijing needs to shift from its current economic model and become a consumption-led economy, not one propped up by state-controlled exports.

According to remarks shared from the summit, Scott also stressed that the US is trying to remain attractive for capital by pushing tax cuts, easing regulations, and rebalancing trade.

He said the Trump administration is focused on reviving precision manufacturing, describing it as a key part of the strategy to boost domestic economic power.

Scott also mentioned the US wants to work more closely with Switzerland, especially in AI and financial services, saying, “There’s real untapped potential between our two countries that we’re only beginning to explore.”

China hits back at US and accuses Trump of breaching deal

The same day Scott gave that speech, China’s Ministry of Commerce issued a sharp response to the US, accusing President Donald Trump of violating the terms of their recent trade agreement.

In a statement shared Monday, the Chinese government rejected claims from Trump that Beijing had gone back on the deal reached in Geneva last month.

“If the US insists on its own way and continues to damage China’s interests, China will continue to take resolute and forceful measures to safeguard its legitimate rights and interests,” the ministry said.

Beijing pointed to new restrictions from Washington, including AI chip export controls, limits on chip design software, and a wave of revoked student visas for Chinese nationals.

They said those decisions were made unilaterally and went against the consensus formed during a January 17 phone call between Trump and Xi Jinping. The ministry said these US actions undermined all previous discussions and showed a lack of commitment to fair negotiation.

Even as tension rises, officials on both sides are still preparing for a potential phone call between Trump and Xi. A senior White House official told CNBC on Monday that while no specific date had been confirmed, the two leaders are likely to speak “very soon.”

Trump had previously said he hoped to speak directly with Xi to “get things moving” again, but the growing backlash from China is casting doubt over whether that conversation will happen this week.

White House pushes ahead with new trade deals despite fallout

On the US side, Deputy Treasury Secretary Michael Faulkender gave an update Monday on where the administration stands with trade talks. Speaking on CNBC’s Squawk Box, Faulkender said, “We continue to make very good progress. We’re close to the finish line on a couple of countries.”

He explained that the White House is aiming to announce several deals before July 9, the deadline set internally to move from temporary pauses to formal agreements.

Faulkender added, “As long as our partners demonstrate goodwill and real progress, we’ll keep working with them. We’re committed to getting real terms in place, not just headlines.”

He also made it clear that Trump’s administration wants “resolution and clarity” both for the American public and financial markets. Without naming the countries directly, Faulkender said, “We’re working on a couple of imminent deals that should be finalized soon.”

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