US pushes G20 to tackle trade imbalances
US Treasury Secretary Scott Bessent used the G20 finance chiefs' meeting in Asheville, North Carolina, to press other members to adopt the Trump administration's approach of using tariffs and other measures to counter what he described as trade imbalances caused by non-market economies.
"We're seeing a lot of non-market economies with these big imbalances that are sucking growth from the rest of the world," Bessent told reporters at the two-day meeting, as reported by Al Jazeera.
According to CNA, Bessent told Reuters on Sunday that he would urge G20 members to re-examine their terms of trade with China and consider higher trade barriers to Chinese goods, in an effort to pressure Beijing to shift its economy away from exports and toward domestic consumption. He also said he had warned other trading partners last year that tougher US tariffs would lead to an influx of Chinese goods diverted to their markets.
"And unfortunately, I was right. They have – and the rest of the world probably needs to take a hard look at what they should be doing to protect their citizens' jobs," he told the meeting, as quoted by Al Jazeera.
Differing views among G20 members
European officials at the meeting acknowledged China's role in global imbalances but also pointed to other factors, including US policies.
European Economy Commissioner Valdis Dombrovskis agreed that China is a major source of imbalances, saying, as quoted by both Al Jazeera and CNA, "China would need to spend more, US would need to spend less, and EU would need to invest more."
Polish Finance Minister Andrzej Domanski echoed concerns about China's trade practices, saying, as reported by CNA, "We do know that Chinese currency is hugely undervalued, that China is supporting very actively subsidising its exports."
German Finance Minister Lars Klingbeil, meanwhile, cited the US-Israel war on Iran and ongoing US tariff disputes as major causes of uncertainty holding back the global economy, according to Al Jazeera.
Japan's Finance Minister Satsuki Katayama said arbitrary export restrictions on critical minerals were harming the global economy and should be withdrawn, as reported by CNA. This came after China placed export restrictions on rare earths in April 2025, according to Al Jazeera.
Bond market turmoil and economic context
The meeting took place amid a global bond market sell-off, with Japan's 10-year bond yield hitting 3 per cent for the first time since 1996, as reported by CNA. Government bond yields rose in major economies including the US, Japan, the euro zone and Germany, as well as Britain, where yields surged 10 basis points after a public holiday on Monday amid fresh worries over renewed attacks in the Middle East.
The focus on China comes as the country's massive export push has pressured economies worldwide, especially as the US has imposed high tariffs on Chinese goods and outright bans on some products, such as Chinese vehicles, according to Al Jazeera. With chronically weak domestic demand, China has doubled down on exports of electric vehicles, semiconductors and other goods, with its total exports rising 23.9 per cent in July year-on-year, as reported by CNA.
A study by the Tax Foundation, cited by Al Jazeera, found that the Trump administration's tariffs imposed throughout 2025 raised the retail price of imported consumer goods by roughly 7 per cent relative to pre-tariff trends.
Russia's Finance Minister Anton Siluanov attended the G20 meeting in person, the first time Russia has participated since its invasion of Ukraine in 2022, according to CNA.
It remains unclear whether the US will be able to bring the diverse forum together to agree on a joint communique on how to reduce global imbalances, as CNA reported. China has shown little interest in longstanding calls to reduce industrial subsidies and rebalance its economy, while its yuan currency remains significantly undervalued by most measures, the same report added.