Bessent specifically called for the IMF to enhance its country surveillance with greater objectivity and evenhandedness in examining economic imbalances.
“The IMF should not shy away from asking difficult questions, more clearly highlighting internal and external imbalances, deepening its understanding of how industrial policies in large economies such as China contribute to those imbalances, explaining their potential harmful spillovers, and recommending appropriate corrective actions,“ Bessent told the IMF’s steering committee.
China maintains that its success in sectors like electric vehicles stems from innovation rather than government subsidies.
He emphasized that IMF resources must not serve as a piggy bank for creditor countries that made poor lending decisions but refuse to accept losses.
The Treasury Secretary also targeted China within World Bank operations by urging restrictions on anti-competitive procurement practices by state-owned enterprises.
He advocated for increased World Bank financing in critical minerals to diversify supply chains currently dominated by China.
Both nations continue collaborating on developing country debt issues through the Global Sovereign Debt Roundtable despite their trade differences.
Bessent’s statements represent his most detailed instructions to date regarding China’s role in global economic institutions.
His comments align with the Trump administration’s broader trade and energy policies opposing green subsidies.
Bessent first called for increased scrutiny of China’s economic practices at the global lenders back in April. – Reuters
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