ASHEVILLE, \u200bNorth Carolina: US Treasury Secretary Scott Bessent said on Sunday he will encourage G20 members to re-examine terms of trade with China to shrink global imbalances and press Beijing to rebalance its economy away from exports and toward domestic consumption.<\/p>\n
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 \u201crapidly improving.\u201d<\/p>\n
\u201cThe world cannot have a China with a $1.2 trillion trade surplus,\u201d Bessent said. \u201cIn China, the economy is quite weak, and they are trying to export their way out of it, and they need to rebalance their economy.\u201d<\/p>\n
Bessent\u2019s push to mobilize a coordinated trade response to China comes \u200cas legal setbacks \u200cforce the US to rebuild its tariff policy, which had sharply reduced \u200bimports \u200cfrom \u2060China but led \u200bto \u2060an influx of Chinese imports elsewhere, especially to Europe and Latin America.<\/p>\n
The US has walled off its economy from many Chinese goods with high tariffs and outright bans on some products including autos. Bessent said he told other industrial economies last year they would face pressures from the China import surge and that \u201cnow they are confronted with some very stark choices.\u201d<\/p>\n
He said it will be up to other countries to give China an incentive to shift away from exports and strengthen its chronically weak domestic demand.<\/p>\n
\u201cThe rest of the world is going to have to examine their terms of trade with China,\u201d Bessent \u2060said.<\/p>\n
The US is pushing for a G20 joint statement on reducing trade and current \u200caccount imbalances. China\u2019s embassy in Washington could not immediately be reached for \u200ccomment on its view of the effort.<\/p>\n
Tariffs imposed since US President Donald Trump \u200breturned to office in 2025 have helped cut the \u200cUS trade deficit with China for the first six months of 2026 by a third from the same period of \u200c2025, to $73.9 billion, according to US Census Bureau data. Some acceleration of Chinese imports occurred in January of the year-earlier period as importers tried to beat anticipated tariffs.<\/p>\n
Although some economists and European leaders have called for a coordinated effort to strengthen China\u2019s yuan, Bessent questioned the effectiveness of such a move. The International Monetary Fund has assessed the yuan to be undervalued by as much as 21 percent.<\/p>\n
Suggestions \u200cthat a new \u201cPlaza Accord\u201d \u2013 the 1985 agreement to strengthen currencies against the dollar \u2013 was the answer to reducing imbalances are misguided, he said, calling this \u201can easy way to get \u2060around dealing with the real \u2060trade problem,\u201d which he said was excessive Chinese industrial subsidies and weak domestic demand.<\/p>\n","protected":false},"excerpt":{"rendered":"
ASHEVILLE, \u200bNorth Carolina: US Treasury Secretary Scott Bessent said on Sunday he will encourage G20 members to re-examine terms of trade with China to shrink global imbalances and press Beijing to rebalance its economy away from exports and toward domestic consumption. Bessent said in an interview ahead of a G20 finance leaders meeting that the …<\/p>\n","protected":false},"author":4,"featured_media":102345,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-102331","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-world"],"_links":{"self":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/102331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/comments?post=102331"}],"version-history":[{"count":1,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/102331\/revisions"}],"predecessor-version":[{"id":102346,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/posts\/102331\/revisions\/102346"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media\/102345"}],"wp:attachment":[{"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/media?parent=102331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/categories?post=102331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nabanews.pk\/en\/wp-json\/wp\/v2\/tags?post=102331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}