Beijing Barks, Washington Wavers: The Illusion of “Back on Track” U.S.-China Trade Talks

The fog of diplomacy has rolled in thick and fast once again. This week’s headlines ring with the familiar clang of trade tension as Treasury Secretary Scott Bessent insists U.S.-China communications are “back on track,” even as Beijing fires off its most aggressive response to date regarding new American tariffs. If that sounds contradictory, that’s because it is. Bessent, in classic D.C. form, reassures us that dialogue is flowing—never mind that China just threatened retaliatory action over what it calls Washington’s “unilateral bullying.” This is what passes for progress in today’s economic theater: one side fires a warning shot, and the other calls it a “productive conversation.” Meanwhile, markets shudder under the weight of this kabuki diplomacy. Last Friday’s market…