Scott Bessent Calls for G20 Action Against China's $1.2 Trillion Trade Surplus

US Treasury Secretary Scott Bessent has highlighted the urgent need for G20 member nations to reassess their trade relationships with China, particularly in light of Beijing's record $1.2 trillion trade surplus. Speaking at the G20 finance ministerial meetings in Asheville, North Carolina, Bessent framed the issue as one that cannot be resolved by any single country alone.

China's exports surged by 23.9% year-on-year in July 2026, contributing to a global trade surplus that has raised concerns about economic imbalances. Bessent argues that while the US has implemented tariffs to address these issues, unilateral measures have only redirected trade flows rather than effectively reducing the surplus. He advocates for a multilateral approach, urging other major economies to impose aligned trade barriers to limit China's ability to reroute exports.

The International Monetary Fund (IMF) has also weighed in, estimating that the Chinese yuan is undervalued by approximately 21%, which gives Chinese exports an artificial price advantage in global markets. Bessent's proposal includes not only the adoption of coordinated trade measures but also a push for China to restructure its economic model to rely less on exports and more on domestic consumption.

As the G20 meeting approaches, the implications of Bessent's call for action could have significant effects on global markets, particularly in sectors heavily reliant on Chinese exports. A unified stance from G20 nations could reshape the competitive landscape for exporters worldwide.