U.S. Treasury Secretary: "Discussing Establishment of Board of Investment with China... Pre-Screening Role"

Interview with CNBC

Tariff Removal Considered for Items Not Subject to Reshoring

During U.S. President Donald Trump's visit to China, the United States and China are discussing the simplification of procedures for Chinese capital investment in the U.S. and the reduction of tariffs on certain non-core items.

Scott Bessent, U.S. Secretary of the Treasury, stated in an interview with CNBC in Beijing on May 14 that "the United States and China are discussing the establishment of a 'Board of Investment' to oversee investments in sectors that are not sensitive."

Scott Bessent, U.S. Secretary of the Treasury, is arriving through Incheon International Airport on May 13, 2026. Photo by Yoon Dongju

He explained that this is not intended to bypass the Committee on Foreign Investment in the United States (CFIUS), which reviews foreign acquisitions of U.S. assets, but rather to pre-screen non-sensitive transactions to increase the likelihood of approval. Currently, Secretary Bessent serves as the chairman of CFIUS.

Secretary Bessent said, "There are many areas in which China can invest," and explained, "What we want is to review such investment deals in advance so that they do not reach the CFIUS review stage." He added, "It could serve as a 'pre-game' review to confirm in advance whether or not a sector is strategic or sensitive."

However, regarding reports that the U.S. had approved purchases of NVIDIA H200 high-performance AI chips by ten Chinese companies, he said, "This is the first I've heard of it," drawing a clear line and adding, "This matter falls under the jurisdiction of the Department of Commerce."

Secretary Bessent also explained that "there are discussions about removing tariffs on non-core areas and items not subject to U.S. reshoring efforts among approximately $30 billion worth of trade."

He continued, "For example, low-cost consumer goods such as fireworks will inevitably continue to be imported from China. These items could be untariffed," he said.

He also added, "China wants to purchase more American products, and today there were discussions about China buying more American energy as well."

This round of discussions is interpreted as an attempt to maintain checks in strategic industries and security sectors, while managing the relationship by reducing cost burdens in the general consumer goods and non-core industries. This comes as both the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) have risen sharply recently, increasing inflationary pressures. Easing tariffs on some low-cost Chinese consumer goods could help alleviate price burdens.

This content was produced with the assistance of AI translation services.