Bessent urges G20 to curb China's trillion-dollar surplus

U.S. Treasury Secretary Scott Bessent urged G20 finance leaders to reexamine trade terms with China, argueing that Beijing’s $1.2 trillion export surplus is unsustainable and requires a shift toward domestic consumption. He said coordinated policy action is needed as U.S. tariffs and bans push Chinese shipments to Europe and Latin America, and that other major economies should help curb the global imbalance. Bessent’s push, articulated ahead of Asheville meetings, emphasizes a multilateral approach—using tools like export credits, investment screening, and targeted subsidies to encourage a rebalance away from export-led growth. He stressed that the rest of the world must determine its own terms of trade with China to create incentives for Beijing to strengthen domestic demand. The discussions come with rising concerns about currency undervaluation and the overall resilience of the global economy, as Chinese exports continue to grow even while the bilateral U.S.-China relationship evolves. The IMF has noted the yuan may be undervalued, adding context to the debate over how best to address structural imbalances.