US Treasury Secretary Scott Bessent is urging G20 nations to conduct a thorough review of trade agreements with China, according to Reuters reporting from the finance ministers’ meeting in Asheville, North Carolina. Bessent argues that the world cannot sustain a Chinese trade surplus reaching 1,200 billion dollars, pointing to economic imbalances ahead of a planned summit between US President Donald Trump and Chinese President Xi Jinping.
Global Trade Imbalances and the Chinese Surplus
Bessent stated that China must rebalance its economy to rely more heavily on domestic consumption rather than heavy export dependence. According to Reuters, the US Treasury Secretary noted on Sunday that the Chinese economy remains weak and is attempting to export its way out of domestic stagnation. Public data indicates that the US trade deficit with China dropped to 73,9 billion dollars in the first half of 2026, marking a 33 percent decrease from the same period in the previous year. However, US tariffs have redirected excess Chinese goods toward alternative markets across Europe and Latin America.
Did you know? The 1985 Plaza Agreement involved G5 nations—the United States, Great Britain, France, West Germany, and Japan—coordinating to weaken the US dollar against the Japanese yen and other currencies to shrink America’s historical trade deficit. US Treasury Secretary Scott Bessent has explicitly rejected a modern repetition of this agreement to address current trade gaps with Beijing.
Beijing Response and Diplomatic Engagements
The Chinese Foreign Ministry rejected the characterization of its trade policies during a press briefing in Beijing. Speaking through spokesperson Guo Jiakun, and reported by Bloomberg, Beijing asserted that economic ties with Washington remain mutually beneficial in nature. Guo stated that China never seeks a trade surplus and firmly opposes unilateral tariff measures, maintaining that any disputes should be resolved through open dialogue.
Tariffs and Broader Geopolitical Friction
The push for a coordinated G20 stance coincides with ongoing adjustments to US trade enforcement following recent legal setbacks. Analyses published by The Wall Street Journal highlight that US trade restrictions continue to strain diplomatic channels, noting separate disputes over trade relationships involving nations like Canada and Iran. Concurrently, analysts warn that Beijing leverages economic pressure to fracture unified EU policy stances, leaving specific member states vulnerable to targeted trade influence.
Frequently Asked Questions
What is Scott Bessent’s main argument regarding China?
US Treasury Secretary Scott Bessent argues that China’s massive export surplus—reaching 1,200 billion dollars—is unsustainable. He maintains that Beijing must rebalance its economy toward domestic consumption rather than relying on heavy exports to counter domestic weakness.
How has China responded to the US trade demands?
According to Bloomberg, Chinese Foreign Ministry spokesperson Guo Jiakun stated that China never seeks a trade surplus, opposes unilateral tariffs, and believes economic ties with the US are mutually beneficial and best managed through dialogue.
Will there be a new Plaza Agreement?
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