Bessent Says G20 Agrees ‘Cheap Exports’ Are Unsustainable, China Dissents/ TezzBuzz/ WASHINGTON/ J. Mansour/ Treasury Secretary Scott Bessent said 19 G20 participants agreed that persistent streams of cheap exports from nonmarket economies were unsustainable, while China dissented. Bessent urged other countries to protect domestic jobs and manufacturing, previewing trade and artificial-intelligence discussions between Presidents Donald Trump and Xi Jinping. The summit also addressed Iran, global debt and Russia’s participation, which drew objections from Canadian and European officials.
Quick Look
- Bessent said every G20 participant except China supported language addressing “cheap exports.”
- He blamed China’s large trade surplus for global economic imbalances.
- China recorded a $1.2 trillion trade surplus in 2025.
- Bessent urged other nations to protect domestic jobs and manufacturing.
- Trump and Xi are expected to meet later in September.
- Artificial-intelligence policy will be part of their discussions.
- Bessent criticized AI companies for failing to explain their benefits to the public.
- Trump’s 2025 tariffs increased imported consumer-goods prices by about 7%, according to the Tax Foundation.
- The Supreme Court ruled Trump’s emergency global tariffs unconstitutional in February.
- The administration is considering an additional 7.5% tariff on Chinese imports.
- The U.S. and China agreed that Iran should not possess a nuclear weapon and Hormuz shipping should remain open.
- Global debt has reached $353 trillion, including $40 trillion in U.S. debt.
- Russian Finance Minister Anton Siluanov’s attendance drew objections from Canada and Europe.
Deep Look
Bessent says G20 members oppose cheap exports
Treasury Secretary Scott Bessent said 19 participants at a Group of 20 finance meeting agreed that persistent streams of inexpensive exports from nonmarket economies are creating unsustainable global imbalances.
Bessent said China was the only dissenter during the two-day gathering of finance ministers and central bankers in Asheville, North Carolina.
“We believe that non-market-based economies pushing out a never-ending stream of cheap exports is not sustainable,” Bessent told reporters, describing the position he said all but one participant supported.
“It is clear that the country with the world’s largest and unsustainable current account surplus, the People’s Republic of China, was the dissenter,” he added.
US blames China for global trade imbalance
The Trump administration argues that China’s economic policies have produced an enormous trade surplus while contributing to large deficits in the United States and elsewhere.
China’s trade surplus reached a record $1.2 trillion in 2025.
Bessent said the imbalance impedes global economic growth by shifting manufacturing and employment toward China and away from other countries.
Many economists have similarly raised concerns about China’s industrial capacity, subsidies and export-focused growth model, although they do not universally support the Trump administration’s tariff response.
Bessent urges other countries to adopt protections
Bessent told G20 counterparts that they should consider tariffs or other measures resembling those imposed by the Trump administration.
He said he warned foreign governments at the beginning of Trump’s second term that a new American “tariff wall” would redirect Chinese exports into their markets.
“And unfortunately, I was right,” Bessent said. “The rest of the world probably needs to take a hard look at what they should be doing to protect their citizens’ jobs, their manufacturing base, so that everything they do doesn’t get offshored.”
Bessent’s comments suggested the administration wants to build a wider international front against Chinese trade practices.
Trump and Xi prepare for meeting
Bessent previewed an expected meeting between Trump and Chinese President Xi Jinping later in September.
Trade imbalances, tariffs and industrial policy are likely to feature prominently in their discussions.
Trump said after the G20 meeting that “very productive and positive conversations were had.”
He added that other countries “should follow our lead.”
The meeting between Trump and Xi could test whether the two governments can ease economic tensions or will impose additional trade restrictions.
AI guardrails expected on agenda
Bessent said artificial-intelligence policy would also be discussed when Trump and Xi meet.
He called for additional safeguards to prevent “non-state actors” from developing powerful AI models without adequate oversight.
Bessent also criticized the technology industry for failing to communicate how artificial intelligence will benefit ordinary people.
He said AI companies, “whether it is the builders of the data centers, whether it is the labs themselves, have done a horrendous job, horrendous job of explaining themselves to the American people.”
“They’re going to have to take some of the blame, and they are going to have to convince the American people that all the benefits will not accrue to a small group.”
His remarks reflected growing concern that AI’s financial rewards could be concentrated among a limited number of companies and investors.
Trump tariffs increased consumer prices
Trump’s tariff policies have been criticized by economists and politicians who argue that import taxes increase prices for American consumers and damage relations with allies.
The Tax Foundation found that tariffs imposed during 2025 raised retail prices for imported consumer products by approximately 7% compared with pre-tariff trends.
Although tariffs are charged to importers, their costs can be passed along to households through higher prices.
The Trump administration maintains that the measures protect American jobs, encourage domestic investment and pressure foreign governments to change trade practices.
Supreme Court overturned emergency tariffs
The Supreme Court ruled in February that the sweeping global tariffs Trump imposed through an emergency-powers statute were unconstitutional.
The ruling forced the administration to redesign its trade strategy using other legal authorities.
Washington is now considering an additional 7.5% tariff on Chinese imports following investigations into alleged excess industrial capacity and forced-labor regulations.
That approach would be narrower than Trump’s previous global tariffs but could still affect a broad range of Chinese products.
US and China find common ground on Iran
Bitter with Chinese officials during the summit and said the two governments identified some shared positions regarding Iran.
He said both agreed that Iran “cannot have a nuclear weapon.”
The countries also agreed that oil and other goods should be able to move freely through the Strait of Hormuz, which Iran has largely restricted during its war with the United States.
China has a strong interest in restoring traffic because it is the largest buyer of Iranian oil and depends heavily on energy imports moving through the region.
The agreement did not resolve broader differences between Washington and Beijing over Iran, sanctions or the U.S. military campaign.
Global debt reaches record level
Global debt has reached a record $353 trillion.
U.S. government debt surpassed $40 trillion in August, intensifying concerns about deficits, interest payments and Treasury borrowing.
Investors have been selling government bonds, pushing yields and borrowing costs higher.
Bessent played down concerns about market instability.
“I don’t think we’re in any kind of dire situation,” he told reporters.
Higher Treasury yields can raise mortgage rates and borrowing expenses for businesses, households and the federal government.
Russia’s attendance unsettles participants
The participation of Russian Finance Minister Anton Siluanov created tension during the meeting.
Siluanov met with Bessent on the sidelines Monday but was excluded from the traditional “family photo” of finance ministers.
Canadian Finance Minister François-Philippe Champagne said Russia’s attendance “created a lot of discomfort around the table.”
“We have made sure our discomfort is being heard by colleagues with respect to who is in attendance at the meeting,” Champagne said.
European Economy Commissioner Valdis Dombrovskis said it was not the time to “normalize” relations with Russia while its war against Ukraine continued.
Bessent defends dialogue with Russia
Bessent defended the decision to include Siluanov, arguing that communication was necessary to resolve conflicts.
“If the sides don’t talk, if we are not engaged, then how can it be solved?” Bessent said.
“I know that some Europeans had a sour taste” about the invitation, he added. “If both fighters go in a corner, then there will never be a resolution to this horrible conflict.”
His remarks underscored a divide between officials who favor continued engagement with Moscow and those who believe international participation risks legitimizing Russia while the Ukraine war continues.
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