Treasury Secretary Scott Bessent has called upon G20 nations to reassess their trade deals with China, aiming to alleviate global imbalances.
Bessent made these comments on Sunday, before a G20 finance leaders’ meeting on Monday. He underscored the necessity for Beijing to transition its economy from export-focused to domestic consumption, Reuters reported.
“The rest of the world is going to have to examine their terms of trade with China,” he said.
Despite the “rapidly improving” direct trade position between the U.S. and China, Bessent pointed out the unsustainable nature of China’s current export boom. He declared, “The world cannot have a China with a $1.2 trillion trade surplus.”
The appeal for a unified trade response from the Treasury Secretary comes as the U.S. grapples with legal setbacks that are compelling it to revamp its tariff policy. This policy had significantly reduced imports from China, but it led to an increase in Chinese imports in other regions, notably Europe and Latin America.
Bessent stated that ‘last year’ he cautioned other industrial economies about potential pressures from the surge in Chinese imports, stating that “now they are confronted with some very stark choices.”
US-China Eye Trade Reset
This call for reassessment comes as the U.S. is set to host G20 finance ministers and central bank governors, starting on Monday in Asheville, North Carolina. The meeting is expected to test the bloc’s ability to find common ground on trade, energy, and conflict. Bessent is expected to urge G20 counterparts to reduce trade imbalances, enhance growth, and cut business ties with Iran.
Meanwhile, Chinese Foreign Minister Wang Yi has urged Washington and Beijing to “overcome obstacles” and maintain high-level exchanges ahead of a planned summit between President Donald Trump and President Xi Jinping in September. Trump is considering an additional 7.5% tariff on Chinese goods over concerns about industrial overcapacity, according to recent reports, adding fresh tensions ahead of Xi’s visit.
However, according to Reuters, the U.S. and Chinese officials will discuss cutting tariffs on non-strategic goods and establishing AI guardrails to prevent powerful models from reaching non-state actors. Bessent estimated that up to $30 billion in goods on each side could see tariffs removed.
Notably, Trump’s tariffs have helped cut the trade deficit with China by one-third to $73.9 billion in the first half of 2026, as per the U.S. Census Bureau data, though early-2025 imports were boosted as businesses rushed to beat expected tariffs.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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