G20 countries should consider more trade barriers with China to cut imbalances, Bessent says

U.S. Treasury Secretary Scott Bessent has suggested that G20 nations should reconsider their trade relations with China to address global imbalances, according to Reuters. Bessent made these remarks in an interview prior to a G20 finance leaders' meeting, emphasizing that the current surge in Chinese exports is unsustainable. Despite the improvement in the U.S.'s trade position with China, Bessent warned that China cannot maintain a $1.2 trillion trade surplus.

He argued that the Chinese economy is struggling and that Beijing needs to rebalance its economy away from exports. The U.S. has implemented significant tariffs and bans on certain Chinese goods, such as automobiles, causing China to redirect its exports to other regions, notably Europe and Latin America. Bessent believes that other countries must provide China with incentives to shift towards domestic consumption and away from export-driven growth.