ASHEVILLE, North Carolina - US Treasury Secretary Scott Bessent told Reuters on Sunday (Aug 30) that he will encourage G20 member countries to re-examine their terms of trade with China as part of efforts to shrink global imbalances and press Beijing to rebalance its economy away from exports towards more domestic consumption.
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 "rapidly improving."
"The world cannot have a China with a US$1.2 trillion (S$1.53 trillion) trade surplus," Bessent said. "In China, the economy is quite weak, and they are trying to export their way out of it, and they need to rebalance their economy."
The US has walled off its economy from many Chinese exports with high tariffs and outright bans on some Chinese products including autos, leading China to divert exports elsewhere, especially to Europe and Latin America, Bessent said.
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.
"The rest of the world is going to have to examine their terms of trade with China," Bessent said.
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