G20 countries should consider more trade barriers with China to cut imbalances, Bessent says

Live updates

1. 13d ago

   China blocks G20 statement on trade imbalances, Bessent says

   Treasury Secretary Scott Bessent reports that China prevented a G20 joint communique after 19 other members agreed that cheap exports causing global economic imbalances are unsustainable. During meetings in Asheville, Bessent urged G20 nations to target China's $1.2 trillion trade surplus. While the US and China agree on keeping the Strait of Hormuz open, China dissented from the statement opposing the flooding of markets with cheap exports. Bessent is also leading an administration plan to use secondary sanctions to restrict Iran's economy.

   Why it matters

   The US is seeking a unified international front to force a rebalance of global trade. This effort focuses on reducing the scale of China's export machine to prevent market saturation.

   What is confirmed

   • Treasury Secretary Scott Bessent stated that 19 G20 members agreed cheap exports are unsustainable, but China dissented.
   • China prevented a G20 communique regarding trade imbalances.
   • The US is pushing the G20 to address China's $1.2 trillion trade surplus.
   • The US and China agree on the importance of keeping the Strait of Hormuz open.

   Still unconfirmed

   • Bessent is leading a plan to choke off Iran's economy through secondary sanctions on business partners.
   • G20 differences remain regarding sovereign debt restructurings.

   What to watch next

   • Official release of any revised G20 joint statement
   • Updates on secondary sanctions targeting Iranian business partners
   Sources used for this update (5)

   1. www.straitstimes.com — China prevented G-20 communique over imbalance trade spat, says US’ Bessent
   2. finance.yahoo.com — Some G20 differences remain over imbalances, sovereign debt, US Treasury official says
   3. cryptobriefing.com — US pushes G20 to cut trade imbalances and focus on China’s $1.2 trillion surplus
   4. www.cnbc.com — China dissented from G20 statement opposing 'cheap exports' flooding market, Bessent says
   5. apnews.com — Bessent says 19 finance ministers agreed ‘cheap exports’ are unsustainable, but China dissented
   confidence 90%
2. 15d ago

   Bessent Urges G20 to Increase Trade Barriers Against China

   Treasury Secretary Bessent is pressing G20 nations to adopt more trade barriers and reassess trade terms with China to reduce global imbalances. Bessent specifically highlighted China's $1.2 trillion trade surplus as an unsustainable figure that the world cannot maintain. He called for the creation of a unified wall against China's export machine to force a rebalance. Separately, Bessent declined to provide advice to the Bank of Japan regarding the possibility of back-to-back interest rate increases.

   Why it matters

   Trade imbalances between China and G20 economies often lead to diplomatic friction and economic volatility. This push for collective barriers suggests a shift toward coordinated protectionism to curb Chinese exports. The Bank of Japan's rate trajectory remains a separate point of global financial sensitivity.

   What is confirmed

   • Bessent urged G20 countries to consider more trade barriers with China to cut imbalances.
   • Bessent identified China as having a $1.2 trillion trade surplus.
   • Bessent declined to advise the Bank of Japan on whether to implement back-to-back rate increases.

   Still unconfirmed

   • The G20 needs more carrots to rebalance away from China.
   • Bessent wants the G20 to build a unified wall against China's export machine.

   What to watch next

   • Official G20 responses to the proposal for coordinated trade barriers
   • Future statements from the Bank of Japan on interest rate hikes
   • Changes in trade terms between G20 members and China
   Sources used for this update (8)

   1. Reuters — G20 countries should consider more trade barriers with China to cut imbalances, Bessent says
   2. Atlantic Council — The G20 needs more carrots to rebalance away from China
   3. investingLive — More from Bessent, presses G20 to confront China's $1.2 trillion trade surplus
   4. Forex Factory — Bessent: Will urge G20 nations to reassess trade terms with China to lower global imbalances
   5. Crypto Briefing — Bessent pushes G20 to build a unified wall against China’s export machine
   6. Forex Factory — Bessent: Won't advise on whether BoJ should consider back-to-back rate increases
   7. Crypto Briefing — Bessent declines to advise Bank of Japan on rate increases
   8. www.theepochtimes.com — G20 Countries Should Consider More Trade Barriers on China, Says Bessent
   confidence 90%