US Treasury Slams China’s Trade Model | Urges Urgent Global Rebalancing

At the Institute of International Finance, U.S. Treasury Secretary Scott Bessent made a bold statement: China must change — now. Responding to President Trump's tariff strategy, Bessent revealed that over 100 countries are aligning with the U.S. to reset the rules of global trade. In a strong rebuke of China’s current economic model, he warned that its reliance on manufacturing and export overcapacity is worsening global imbalances. Bessent stressed that China’s path—exporting its way out of economic trouble—is not only unsustainable but harmful to the world economy. He called for a shift in China's priorities: away from manufacturing dominance and toward bolstering domestic consumption. Only then, he argued, can real rebalancing happen. But China isn’t the only target. Bessent also criticized the global overdependence on U.S. demand. From excess savings in Asia to wage suppression policies, he pointed out how these practices are undermining global stability. He also cited former ECB President Mario Draghi’s warnings on European stagnation.