U.S. Treasury Secretary Scott Bessent is set to urge G20 member nations to review trade terms with China, arguing that China's trade surplus of $1.2 trillion is unsustainable and pressing China to restructure its economy away from export dependence toward domestic consumption. Ahead of the G20 finance ministers and central bank governors meeting in Asheville, North Carolina, Bessent said the world cannot have a China with such a large trade surplus, and that China's weak economy is being propped up by exports. While U.S. tariffs under Trump have directly reduced imports from China, they have led to a shift of Chinese goods to Europe and Latin America. The U.S. is also pushing for a joint G20 statement to reduce trade imbalances and questioning proposals to strengthen the yuan or strike a Plaza Accord-style deal, viewing them as not addressing the real problem. Data from the U.S. Census Bureau shows that the trade deficit with China in the first six months of 2026 fell by about one-third to $73.9 billion. Bessent is scheduled to meet with Pan Gongsheng, governor of the People's Bank of China, and it remains unclear whether he will meet with Vice Premier He Lifeng before the Trump-Xi summit at the White House in late September.
US pushes G20 to review China trade and reduce imbalances, potentially pressuring yuan; no clear direction for USD/CNY from article alone.
