Bessent urges G20 allies to address China's $1.2 trillion trade gap

At a G20 gathering he is seeking to reshape, Bessent has framed China's trade surplus as unacceptable, indicating that Washington intends to use the forum to build multilateral pressure on Beijing rather than relying solely on bilateral tariffs. Such an approach could unsettle currencies and equities across export-heavy Asian economies if other G20 members show any appetite for coordinated trade barriers. At the same time, his confirmation that tariff reductions on $30 billion of non-strategic goods on each side will continue suggests the two countries are not walking back the narrower de-escalation reached earlier this year, which should limit downside for markets pricing in a stable run into the Trump-Xi summit expected around September 24. The uncertainty over whether Bessent will meet Vice Premier He Lifeng in person beforehand leaves open the question of how much groundwork gets laid ahead of that summit, a factor likely to keep the yuan and Chinese equities sensitive to any fresh headlines out of Asheville this week. His comments on AI, particularly around preventing powerful models from reaching non-state actors, add a security dimension to the economic talks that could feed into how tightly future export controls on advanced chips and technology are drawn.

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Earlier:

• Bessent says yen slide is contained, backs Ueda ahead of G20 talks

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Bessent is using the G20 stage to press allies on China's trade surplus while keeping the narrower US-China tariff truce intact ahead of the Trump-Xi summit.

Summary:

• Treasury Secretary Scott Bessent told Reuters the world cannot accept China running a sustained $1.2 trillion global trade surplus.
• He said he will encourage G20 countries at this week's finance leaders' meeting to re-examine their terms of trade with China to reduce global imbalances.
• Bessent argued that stronger trade barriers on Chinese goods would give Beijing incentive to rebalance its economy from exports toward domestic demand.
• He said the direct US-China trade position is improving and that both sides will continue advancing tariff reductions on $30 billion of non-strategic goods each.
• Bessent said he expects robust AI discussions with China, particularly on preventing powerful AI models from falling into the hands of non-state actors.
• He said it remains unclear whether he will meet Chinese Vice Premier He Lifeng in person before the next Trump-Xi summit, expected in late September.

US Treasury Secretary Scott Bessent said the world cannot accept China running a sustained $1.2 trillion global trade surplus, and that he will press fellow G20 finance leaders this week to re-examine their trade terms with Beijing as part of a broader push to reduce global imbalances, according to a Reuters interview. Bessent argued that stronger trade barriers against Chinese goods would give Beijing a clearer incentive to shift its economy away from export dependence and toward domestic consumption.

The comments come as Bessent hosts G20 finance leaders in Asheville, North Carolina, in an effort to revive American leadership of the forum after largely stepping back from it during South Africa's presidency last year. China's trade surplus hit a record $1.189 trillion in 2025, and the International Monetary Fund has estimated the yuan remains undervalued by around 21 percent, even as Beijing has shown little appetite for reducing industrial subsidies or rebalancing toward internal demand, according to Reuters reporting on Bessent's broader G20 agenda.

Despite the tougher rhetoric on the surplus, Bessent said the direct US-China trade relationship is improving and confirmed both countries will continue advancing tariff reductions on $30 billion of non-strategic goods on each side, suggesting Washington is not abandoning the narrower de-escalation track alongside its push for broader multilateral pressure. He also said he expects robust discussions with China on artificial intelligence, particularly around preventing powerful AI models from falling into the hands of non-state actors, adding a security dimension to the economic talks.

Bessent said it remains unclear whether he will meet Chinese Vice Premier He Lifeng in person ahead of the next Trump-Xi summit, which the US president has previously targeted for around September 24 to coincide with the United Nations General Assembly in New York. That meeting would follow the two leaders' three-day summit in Beijing in May, which produced a framework for economic cooperation but no comprehensive trade agreement. With the G20 gathering also expected to address rising US debt levels, now above $40 trillion, and pressure on countries to sever business ties with Iran, Bessent's approach to China's surplus is likely to be read as one plank in a wider attempt to reassert US influence over the group's agenda ahead of the autumn summit season.