Bessent says he’ll ask G20 to rethink trade terms with China
The G20 meeting comes while the war in Iran disrupts energy markets and amid a trade fight between the U.S. and Canada
US Treasury Secretary Scott Bessent raised concerns over China's global trade surplus at the G20 Finance Ministers' meeting in Asheville, North Carolina. The US holds the G20 presidency in 2026 and is leading the forum of major advanced and emerging economies. Bessent stated that it is in the interests of both surplus and deficit countries to address excessive imbalances.
He criticized distorted policies that favor countries' exports, harming many economies represented at the G20. The surge in Chinese exports, particularly in automobiles, solar panels, and batteries, has raised concerns about Beijing's alleged "overcapacity" due to weak pro-consumer policies and state subsidies. China denied deliberately pursuing a trade surplus and opposed unilateral tariff measures.
The US Trade Representative reported a 28% decline in goods trade between China and the US in 2025, down to an estimated US$414 billion. Economists suggest this decline might be deceptive, as more Chinese goods are being routed through third countries. China attributed its industrial overcapacity to technological innovation, market competition, and structural reforms, rejecting claims of state subsidies and weak domestic demand.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
