US Treasury Secretary Scott Bessent says G20 nations should reassess their trade terms with China and encourage Beijing to shift its economy away from exports towards stronger domestic consumption.
G20 countries should consider reassessing their trade relationships with China, including potentially introducing more trade barriers, as part of efforts to reduce global economic imbalances, US Treasury Secretary Scott Bessent said.
Speaking to Reuters ahead of a meeting of G20 finance leaders, Bessent said he would encourage member countries to examine their terms of trade with China and push Beijing to rebalance its economy toward domestic consumption rather than relying heavily on exports.
Bessent argued that the current level of Chinese exports was unsustainable, despite what he described as a rapidly improving US direct trade position with China.
“The world cannot have a China with a $1.2 trillion trade surplus,” Bessent said, adding that China’s relatively weak economy was driving its efforts to export its way out of economic difficulties.
US Tariffs Have Redirected Chinese Exports
The United States has already erected significant barriers against Chinese imports through high tariffs and bans on certain products, including automobiles, according to Bessent.
He said those restrictions had contributed to China diverting exports to other markets, particularly Europe and Latin America.
Bessent said other countries would need to consider how their own trade policies could encourage China to reduce its dependence on exports and address weak domestic demand.
More from Business“The rest of the world is going to have to examine their terms of trade with China,” he said.
The comments come as G20 finance ministers and central bank governors prepare to meet in Asheville, where global economic imbalances and trade policies are among the issues facing policymakers.
Bessent’s remarks could add pressure on other major economies to reassess their trade relationships with China as governments grapple with the impact of China’s large export surplus on global markets.
The US Treasury chief’s comments also underline Washington’s broader push for China to strengthen domestic consumption and reduce its reliance on export-led growth.
