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