Bessent Highlights G20 Consensus on Unsustainable ‘Cheap Exports’, Excluding China

POLICY WIRE — Asheville, N.C. — Treasury Secretary Scott Bessent announced on Tuesday that 19 G20 members have reached a consensus on the need to tackle the issue of ‘cheap exports’, which contribute to global economic disparities. However, China stood apart in its disagreement.

Bessent shared these insights following a two-day conference with finance ministers and central bankers. He emphasized the importance of growth and encouraged certain G20 counterparts to adopt strategies similar to those used by the Trump administration, such as tariffs, to address trade imbalances.

We firmly believe that economies not based on market principles, which continuously release a flood of inexpensive exports, are not viable in the long term, Bessent stated, reflecting the shared view of all G20 members except one.

He identified China, the nation with the world’s largest and unsustainable current account surplus, as the dissenting voice. The Trump administration, along with numerous economists, has pointed to China as the cause of trade imbalances, resulting in a significant trade surplus for China and a considerable deficit for the U.S.

At the concluding press conference, Bessent gave a sneak peek into the forthcoming meeting between President Donald Trump and China’s President Xi Jinping. He cautioned other nations at the start of Trump’s second term about the potential influx of Chinese goods into their markets due to the new U.S. tariff barrier.

Regrettably, my prediction came true, Bessent remarked. It is crucial for the rest of the world to seriously consider measures to safeguard their citizens’ jobs and manufacturing sector, to prevent the complete offshoring of their industries.

Bessent also disclosed that Trump and Xi would tackle artificial intelligence policy during their meeting later this month, stressing the necessity for more regulations to hinder “non-state actors” from constructing their own models.

He criticized AI companies for their inadequate communication with the American public, asserting that they must accept responsibility and persuade the public that the advantages of AI will not be monopolized by a select few.

After the press conference, Trump expressed on his social media platform that the G20 meetings were marked by “very productive and positive conversations”. He urged other countries to “follow our lead”.

The Trump administration’s tariff policies have faced criticism from economists and politicians for increasing costs for U.S. consumers and, in some instances, penalizing allies. An independent think tank, the Tax Foundation, discovered that the tariffs imposed by the Trump administration throughout 2025 raised the retail price of imported consumer goods by approximately 7% compared to pre-tariff trends.

In February, the U.S. Supreme Court ruled that the extensive global tariffs imposed by Trump under an emergency powers law were unconstitutional. The Trump administration is currently revising its approach and is considering an additional 7.5% tariff on Chinese imports following an investigation into alleged excess industrial capacity and forced-labor regulations.

Bessent met with his Chinese counterparts at the summit and found some common ground on Iran, specifically agreeing that Iran cannot possess a nuclear weapon and that oil and other goods should move freely through the Strait of Hormuz, which Iran has restricted.

Bessent has stated that China’s trade surplus, which hit a record-high $1.2 trillion in 2025, is an obstacle to global economic growth, as well as what he terms excessive regulation.

Global debt has soared to a record high of $353 trillion, with U.S. debt reaching a record $40 trillion in August. Although markets have been worried about a sell-off in U.S. government bonds, Bessent reassured reporters, I don’t believe we are in any kind of critical situation regarding bond markets.

The attendance of Russian Finance Minister Anton Siluanov at the conference continued to unsettle participants. Siluanov met with Bessent on Monday on the sidelines of the meeting but was not included in the customary “family photo” of ministers.

Canadian Finance Minister François-Philippe Champagne expressed that Russia’s presence at the G20 meeting caused a great deal of unease around the table, not only from Canada, but from colleagues around the table.

We have ensured that our discomfort is being heard by colleagues regarding who is attending the meeting, Champagne stated.

European Commissioner for the Economy, Valdis Dombrovskis, declared during a press conference on Tuesday that it is not the appropriate time to “normalize” relations with Russia.

Bessent defended Siluanov’s inclusion, arguing that if the parties do not communicate, if we are not involved, then how can it be resolved?

I am aware that some Europeans had reservations about the invitation, Bessent said. If both combatants retreat to their corners, there will never be a resolution to this dreadful conflict, he concluded.

Reporting by Policy-Wire (PW)