WASHINGTON — The United States and China are preparing to engage in a new round of high-level economic discussions, with Treasury Secretary Scott Bessent signaling that talks will address contentious issues including China's oil purchases from sanctioned nations and global economic imbalances.

Upcoming Dialogue Framework

In a recent CNBC interview, Bessent revealed that bilateral discussions have progressed positively following preparatory meetings in Geneva and London. The Treasury Secretary emphasized that while the timeline remains flexible, the administration prioritizes substantive outcomes over hasty agreements.

"We've established productive communication channels," Bessent stated. "What matters now is achieving durable solutions rather than racing against arbitrary deadlines."

Sanctions Evasion Concerns

A central focus of the impending talks involves China's continued procurement of Iranian and Russian petroleum through shadow networks and small-scale refineries. Despite U.S. sanctions targeting both nations, American officials allege these circumvention tactics have undermined enforcement efforts while destabilizing global energy markets.

"The exploitation of third-party intermediaries and opaque shipping methods creates enforcement challenges," Bessent noted, suggesting the issue will require "multilateral coordination beyond simple bilateral remedies."

Persistent Trade Imbalances

The Treasury Secretary also highlighted ongoing concerns about China's export-driven economic model. U.S. tariffs imposed during previous administrations, while reducing the bilateral trade deficit, have reportedly diverted Chinese goods to alternative markets including Europe and Canada — exacerbating global trade distortions.

"Tariff measures alone haven't addressed structural overcapacity," Bessent observed. "We're seeing the same market distortions manifest through different trade routes."

Path Forward

Analysts suggest the negotiations represent a critical juncture for reshaping the world's most consequential economic relationship. Beyond immediate trade volumes, discussions are expected to address fundamental disagreements about fair competition, supply chain resilience, and reciprocal market access.

As both nations navigate complex domestic and geopolitical pressures, the success of these talks may hinge on finding common ground between competing visions for global economic governance. With the world economy facing multiple headwinds, constructive engagement could provide much-needed stability — while failure risks accelerating economic fragmentation.