Bessent: "US restricting corporate investment in China... may also sanction Chinese companies on US stock markets"

Suggests sanctions on US pension funds investing in China

"Must prevent US money from leading to China's military enhancement"

"Some Chinese companies may not be able to trade on US stock markets"

Reciprocal tariffs, different tariff rates by country

When asked about recession possibility: "Economic fundamentals are healthy"

US Treasury Secretary Scott Bessent has suggested that he could block investments in China by US pension funds and private equity funds. He also left open the possibility of sanctions against Chinese companies listed on US stock markets.

When asked during an interview with Fox Business on the 18th (local time), "We know that (the US government) is emphasizing the need to stop investments in Chinese companies through pension funds, private equity funds, and university endowments - what do you think about this? Can we prevent Chinese companies from trading on our (US) exchanges?" Secretary Bessent replied, "All options are available."

Secretary Bessent revealed that a review of US foreign investments is underway. It is being led by Senate and House leaders, with support from the Treasury Department. "We must prevent our investments and technology funding from leading to China's military enhancement," Bessent explained, adding that "President Trump has clearly directed a comprehensive review of US-China (investment) relations."

Regarding US pension funds and university endowments investing in China, Secretary Bessent said, "We need to ensure that American citizens know how their money is being used," and asked rhetorically, "Would ordinary American citizens want their funds to be used for the oppression of Uyghurs?" He also stated, "We will continue to investigate this and block it if necessary."

Regarding sanctions against Chinese companies on US stock markets, Secretary Bessent introduced that "The Treasury Department has an agency called the Committee on Foreign Investment in the United States (CFIUS), which is a long-standing institution that closely examines foreign investors seeking to make significant investments in critical US industries." There is a consensus within the US government that while the US welcomes foreign capital, including from allies, there is a need to filter out risky investors.

Regarding the implementation of reciprocal tariffs scheduled for April 2, Secretary Bessent said, "The US will impose customized tariff rates by country," adding that "Some countries may receive lower tariffs, but others will receive very high tariffs." He explained that some countries may already avoid tariffs through preliminary negotiations. Secretary Bessent revealed that "Most of the overall tariffs will be borne by 15% of countries."

Despite continued suggestions of a possible recession in the US, Secretary Bessent strongly denied this. He argued that "It's a foolish question to ask if there's a guarantee that we can avoid a recession," and claimed that "The fundamental elements of the economy are healthy, and we can avoid a fiscal crisis by reducing unnecessary government spending."

New York=Special Correspondent Park Shin-young nyusos@hankyung.com