US urges G20 to cut trade imbalances, focus on China - Reuters

U.S. Treasury Secretary Scott Bessent used a two‑day gathering of G20 finance ministers in Asheville, North Carolina, to call on his counterparts to address large trade imbalances, particularly those involving China. He urged the group to consider higher trade barriers on Chinese imports and to re‑examine the terms of trade that have allowed a persistent surplus for Beijing to continue.

Bessent said the United States had previously warned that tougher U.S. tariffs would cause Chinese goods to be redirected to other markets, a prediction he said had proved correct. He argued that “non‑market economies with these big imbalances are sucking growth from the rest of the world” and that G20 members need to protect domestic jobs and industries from what he described as distortionary import flows.

The appeal came as global bond markets experienced a sharp sell‑off, with yields rising across major economies. Japan’s 10‑year government bond yield reached 3 percent, a level not seen since 1996, while yields in the United States, the euro zone, Germany and Britain also climbed amid concerns over rising debt levels, inflation pressures and energy‑driven price spikes.

Bessent highlighted the United States’ own measures against Chinese products, noting that high tariffs have been imposed on a range of Chinese goods and that outright bans have been placed on certain items, such as Chinese‑manufactured vehicles. He suggested that similar steps by other G20 members could help pressure Beijing to shift its economic model away from an export‑driven focus toward greater domestic consumption.

China’s export strategy has intensified, with the country expanding shipments of electric vehicles, semiconductors and other high‑technology products despite chronically weak domestic demand. The Treasury secretary said this “massive export push” has placed pressure on economies worldwide and underscored the need for coordinated action among the G20 to rebalance trade flows.

The United States’ call for tighter trade measures and a reassessment of trade relationships with China was framed as part of a broader effort to safeguard global growth, mitigate fiscal imbalances and address the heightened uncertainty reflected in the recent bond market turbulence.