In a significant speech delivered at the Institute of International Finance, U.S. Treasury Secretary Scott Bessent urged China to transition from its current export-oriented growth model towards domestic consumption. He stressed that this change aligns with the evolving economic landscape in the U.S., which is shifting toward manufacturing. The call for economic rebalancing has global implications, particularly impacting trade and manufacturing dynamics. Notably, Bessent’s speech led to optimism within the stock market, reflected by a 2.5% increase in the S&P 500 index. Potential tariff reductions and increased market stability are expected if China successfully implements this shift. China’s regulatory environment is currently focused on its digital yuan, rather than mainstream cryptocurrencies. This suggests limited impact on the cryptocurrency market in the near future. Bessent believes that a successful rebalancing of China’s economy could significantly reshape global trade operations and drive broader market growth. However, it is crucial to note that this shift will require substantial regulatory changes. For further insights into Bessent’s perspective on this topic, please refer to the article where he criticizes the IMF and World Bank, highlighting potential opportunities with China.