Bessent Calls on G20 to Rethink China Trade Ties Amid China's $1.2 Trillion Trade Surplus

US Treasury Secretary Scott Bessent, in a Reuters interview in Asheville, North Carolina on August 30, 2026, said G20 countries should re-examine their terms of trade with China to help shrink global imbalances. He called for G20 members to consider more trade barriers on China as part of that effort.

The remarks come as G20 finance ministerial sessions convene from August 31 to September 1, 2026, addressing broader challenges including calls for faster growth and fairer trade practices. Bessent's evidence is not a US trade surplus, but China's own goods trade surplus with the world, which hit a record $1.189 trillion in 2025. "The world cannot have a China with a $1.2 trillion trade surplus," he said.

Bessent noted the direct US-China trade position has been "rapidly improving" as US tariffs and outright bans on some Chinese products, including autos, have diverted Chinese exports elsewhere, particularly to Europe and Latin America. China has contested that framing, arguing its export competitiveness reflects genuine productivity gains rather than market distortion.

If G20 members move toward stricter trade measures, the near-term effect could be further redirection of Chinese export flows and added pressure on global supply chains, with a risk of retaliatory steps from Beijing. Analysts will watch for concrete proposals emerging from the G20 sessions that build on Bessent's push, and for any signal that Beijing is shifting toward more domestic-consumption-led growth.