G20 Should Reconsider Trade Terms With China, Says U.S. Treasury Secretary

U.S. Treasury Secretary Scott Bessent is preparing to ask G20 members to rethink their trade relationships with China, arguing that Beijing’s export growth is worsening global economic imbalances.

Bessent said China should reduce its dependence on exports and put greater emphasis on domestic consumption. He described the current increase in Chinese exports as unsustainable, even as the United States’ direct trade position with China has improved rapidly.

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The world cannot deal with China running a $1.2 trillion trade surplus.

“The world cannot deal with China running a $1.2 trillion trade surplus,” Bessent said in an interview ahead of a meeting of G20 finance leaders. He said China’s economy was relatively weak and that Beijing was trying to overcome the problem by increasing exports, when it needed to rebalance its economy.

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China’s economy is relatively weak and they are trying to overcome that by increasing exports, whereas they need to rebalance their economy.

The push for a coordinated trade response comes as several legal defeats have forced Washington to rethink its tariff policy. U.S. tariffs reduced imports from China, but also contributed to a rise in Chinese goods entering other markets, especially Europe and Latin America. Washington has further restricted many Chinese products at home through high tariffs and bans on some goods, including vehicles.

Bessent said he had warned industrial economies in 2025 that they would face pressure from a surge in Chinese imports. He called on countries to give China incentives to reduce its export dependence and strengthen domestic demand. The United States also wants the G20 to issue a joint statement aimed at reducing trade and current-account imbalances among member economies.

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Countries around the world need to reconsider their trade terms with China.