US urges G20 countries to consider tougher trade barriers on China
US Treasury Secretary Scott Bessent has called on G20 countries to consider tougher trade measures against China, warning that the country's growing export surplus is creating imbalances in the global economy.
Speaking ahead of a meeting of G20 finance leaders, Bessent said Beijing needs to move away from its reliance on exports and encourage greater domestic spending.
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He described China's current level of exports as unsustainable, pointing to a trade surplus of around $1.2 trillion.
Bessent argued that weakness in the Chinese economy has encouraged Beijing to rely heavily on exports for growth, while domestic demand remains relatively low.
Calls for coordinated action
The United States has already introduced high tariffs and restrictions on a number of Chinese products.
Bessent said this had contributed to Chinese exports being redirected towards other markets, particularly Europe and Latin America.
He said other G20 countries should now review their own trading relationships with Beijing to encourage China to strengthen domestic consumption and reduce its dependence on exports.
The US is also pushing for G20 countries to agree on a joint statement addressing global trade and current account imbalances.
US-China tariff talks continue
Bessent's comments come as Washington and Beijing continue discussions over their trading relationship ahead of an expected meeting between President Donald Trump and Chinese President Xi Jinping in late September.
Officials are expected to continue talks on potentially reducing tariffs on some non-strategic goods.
Bessent suggested there could be around $30 billion worth of goods on each side where tariffs could potentially be removed.
Despite his calls for wider action, Bessent said the US trade position with China is already improving, with the American trade deficit with the country falling during the first half of 2026.