The U.S. government has made it clear that it intends to build a multilateral pressure front through the G20 to curb China's low-cost overproduction exports. This marks a shift from a bilateral trade conflict with China to a global coalition response. In reaction, the Chinese government has strongly opposed this move, emphasizing mutual cooperation, indicating a potential escalation in economic tensions between the two nations.
Scott Vesant, U.S. Secretary of the Treasury, stated in an interview with Reuters on August 30 that the large trade surplus China has maintained can no longer be ignored.
Vesant argued that China relies on aggressive export strategies to overcome chronic domestic demand issues, which exacerbates global economic imbalances and threatens the manufacturing base of importing countries. He noted that as the U.S. defends its market with high tariffs and import bans, China's surplus goods are being redirected to third countries in Europe and Latin America.
To drive structural changes in China, Vesant emphasized that major countries outside the U.S. must fully reassess their trade conditions with China. This reflects a belief that a bilateral tariff war alone has limitations in blocking China's export onslaught. Consequently, the upcoming G20 meeting is expected to feature intense discussions among the U.S. and participating countries regarding the establishment of trade barriers and the revision of trade conditions with China.
Additionally, the U.S. plans to strongly urge G20 member countries to coordinate economic sanctions against Iran. Targeting China, the largest importer of Iranian oil, aims to enhance the effectiveness of efforts to cripple Iran's economy. This move is also seen as an extension of the U.S.-China confrontation into multilateral security and economic issues.
In contrast, the Chinese government has reacted nervously to these developments. Chinese Foreign Ministry spokesperson Guo Jizhong reiterated during a briefing that China has never intentionally pursued a trade surplus and opposes unilateral tariff measures. He emphasized that the essence of U.S.-China economic relations lies in mutual benefits and argued that issues should be resolved through dialogue based on principles of equality and respect.
Meanwhile, Vesant also shared his views on Japan's monetary policy. He assessed that the recent fluctuations in the yen's value do not reach a level that would trigger market intervention, but he diagnosed that the long-standing accommodative monetary policy known as 'Abenomics' has effectively come to an end. While he does not intend to directly instruct Japanese financial authorities, he indicated a willingness to engage in serious discussions with the Bank of Japan regarding the need for a shift in accommodative policies. A separate meeting with Bank of Japan Governor Kazuo Ueda is scheduled during the G20 meeting, suggesting that Japan's future interest rate policies and measures for yen stabilization will also be key topics of discussion.
* This article has been translated by AI.
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