US Treasury Secretary Scott Bessent is urging G20 finance ministers to coordinate trade barriers against China, citing a record $1.189 trillion goods trade surplus in 2025 and 23.9% year-over-year export growth in July 2026, reaching $397.85 billion in a single month. The American government argues that unilateral measures are insufficient, as US tariffs merely redirect trade flows to Europe, Latin America, and Southeast Asia. The IMF estimates the yuan is undervalued by approximately 21%, functioning as a permanent subsidy for every Chinese export. With US national debt exceeding $40 trillion, Bessent is advocating for multilateral solutions to share the burden among G20 partners. The European Union, which has already imposed tariffs on Chinese electric vehicles, shares this frustration and could become a key ally in this coordinated strategy.
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