ASHEVILLE, North Carolina: The United States is pressing G20 countries to address global trade and fiscal imbalances, with Treasury Secretary Scott Bessent urging members to reconsider their trade relationships with China and potentially raise barriers to Chinese goods.

The push comes as a renewed sell-off in global bond markets has heightened concerns over rising debt and inflation pressures. Japan's 10-year government bond yield reached 3% on Tuesday for the first time since 1996.

Government bond yields also rose in the United States, the euro zone, Germany and Britain. British yields climbed 10 basis points after the public holiday on August 31 amid fresh concerns over renewed attacks in the Middle East.

Bessent told Reuters on August 30 that he would urge 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 away from exports and toward domestic consumption.

China's export drive has increased pressure on economies worldwide, particularly as the United States has imposed high tariffs on Chinese goods and outright bans on some products, including Chinese vehicles.

With domestic demand remaining weak, China has increased exports of electric vehicles, semiconductors and other goods. Its total exports rose 23.9 percent in July from a year earlier, prompting growing calls in the European Union for tougher restrictions on Chinese imports.

It remains uncertain whether G20 members will agree on a joint communique outlining measures to reduce global imbalances.

China has shown little interest in longstanding calls to cut industrial subsidies and rebalance its economy, while its yuan remains significantly undervalued by most measures.

The United States, meanwhile, 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 more than US$1 trillion.

European Economy Commissioner Valdis Dombrovskis agreed that China is a major source of global economic imbalances but said the United States and Europe also have roles to play.

"To put it short, the summary of this analysis, which we have been doing over the past couple of years, China would need to spend more, the U.S. would need to spend less, and the EU would need to invest more."

"It's important that all economic blocs take action to address the imbalances that increases obviously the efficiency of global policy response, and that obviously concerns also specifically China," Dombrovskis said. "And of course, another important element is just mentioning that everyone needs to see how it is a growth agenda for everyone. So also China needs to see how it is a growth agenda for China."

China's goods trade surplus with the European Union reached €360.6 billion last year, up 15% from 2024, and has widened further this year as Chinese companies increased sales to the bloc while importing less.

Polish Finance Minister Andrzej Domanski also backed the U.S. view that China's trade surplus with its partners was a major problem, saying the EU was taking measures including customs duties on e-commerce parcels, most of which come from China.

"We do know that Chinese currency is hugely undervalued, that China is supporting very actively subsidizing its exports and this is a problem for Europe as well," he said. "Many, many European countries have these high deficits with China, and definitely we need to take action."

Beijing has also placed export restrictions on rare earths since April 2025, following U.S. President Donald Trump's tariffs. The restrictions have affected companies outside the United States as well.

Japanese Finance Minister Satsuki Katayama said she told G20 counterparts that arbitrary restrictions on critical-mineral exports were damaging the global economy and should be withdrawn.

Officials said negotiations over the planned communique were proving particularly difficult on global imbalances, with China opposing language singling out "non-market economies" or taking a firm stance on critical-mineral supply restrictions.

European countries were also seeking strong wording criticizing Russia's war against Ukraine. Many European ministers expressed surprise and dismay at Russian Finance Minister Anton Siluanov's attendance, the first time Russia has participated in person at the G20 since its 2022 invasion of Ukraine.