US Calls for Tougher Action on China Trade Imbalances at G20

The US is pushing G20 countries to take action against China's trade imbalances, urging members to reconsider their trade relationships and potentially raise barriers to Chinese goods. Treasury Secretary Scott Bessent made this call amid concerns over rising debt and inflation pressures in global bond markets.

Japan's 10-year government bond yield reached 3% for the first time since 1996 on Tuesday, with similar rises seen in the US, euro zone, Germany, and Britain. British yields climbed 10 basis points after a public holiday amid fresh concerns over attacks in the Middle East.

Bessent wants G20 members to re-examine their terms of trade with China and consider higher trade barriers on Chinese goods to pressure Beijing to shift its economy towards domestic consumption. China's export drive has increased pressure on economies worldwide, particularly as the US has imposed high tariffs on Chinese goods and outright bans on some products.

China has shown little interest in cutting industrial subsidies or rebalancing its economy, while its yuan remains undervalued by most measures. The US has not produced a critical plan to reduce its excessive fiscal deficits, which economists say is necessary to reduce its annual global trade deficit of over $1 trillion.