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. Speaking ahead of a G20 finance leaders meeting, Bessent argued that China's current trade surplus of $1.2 trillion is unsustainable. He noted that China's economy is weak and that Beijing is trying to export its way out of the situation.

The U.S. has already imposed high tariffs and bans on some Chinese products, causing China to seek alternative markets, primarily in Europe and Latin America. Bessent believes that other countries must also review their trade terms with China and incentivize the country to shift away from exports and strengthen its domestic demand, which remains chronically weak.