Scott Bessent: China Economy On 'Unsustainable Model That Is Not Only Harming China, But The Entire World'

Forbes Breaking News

In remarks to the Institute of International Finance on Wednesday, Treasury Secretary Scott Bessent called out China's economic model and called for change.

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00:00talking with others. China, in particular, is in need of a rebalancing. Recent data shows the

00:09Chinese economy tilting even further away from consumption toward manufacturing. China's

00:16economic system, with growth driven by manufacturing exports, will continue to create even more

00:23serious imbalances with its trading partners if the status quo is allowed to continue. China's

00:30current economic model is built on exporting its way out of its economic troubles. It's an

00:36unsustainable model that is not only harming China, but the entire world. China needs to change. The

00:44country knows it needs to change. Everyone knows it needs to change, and we want to help it change

00:51because we need rebalancing too. China can start by moving its economy away from export overcapacity

01:00and towards supporting its own consumers and domestic demand. Such a shift would help with

01:07global rebalancing that the world desperately needs. Of course, trade is not the only factor in broader

01:14global economic imbalances. The persistent over-reliance on the United States for

01:21demand is resulting in an evermore unbalanced

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