G20 countries should consider more trade barriers on China to cut imbalances, Be...
Bessent said in an interview ahead of a G20 finance leaders meeting that the current flood of exports from China was unsustainable, even though the US direct trade position with China was "rapidly improving."
Treasury Secretary Scott Bessent has urged G20 nations to reconsider trade terms with China to address global imbalances, despite the US improving its direct trade relations with the country. Bessent emphasized that the current flood of Chinese exports is unsustainable and that China's economy needs rebalancing from exports to domestic consumption.
He argued that a $1.2 trillion trade surplus for China is problematic and that the world cannot sustain such an imbalance. China's weak domestic demand is a significant concern, and Bessent believes that other countries must offer incentives to China to shift away from exports. The US has successfully reduced its trade deficit with China through tariffs, from $115.9 billion in 2025 to $73.9 billion in 2026.
However, Bessent doubts the effectiveness of efforts to strengthen China's yuan, citing the International Monetary Fund's assessment of the currency being undervalued by up to 21%. Bessent suggested that a coordinated effort to reduce trade and current account imbalances could involve removing tariffs on non-strategic goods, potentially freeing up $30 billion annually.
He also mentioned plans for bilateral meetings with Chinese officials during the upcoming G20 conference in Asheville.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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