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G20 Plans “Death by a Thousand Cuts” for China’s Economy

by Zero Hedge
September 1, 2026
in Aggregated, Opinions
Zero Hedge
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In this ZeroHedge article, Benjamin Picton reports that G20 finance ministers, pressed by U.S. Treasury Secretary Scott Bessent, are stacking tariffs, energy cutoffs, and trade barriers that together amount to a “death by a thousand cuts” for China’s export-driven economy.

  • At a G20 gathering in Asheville, North Carolina, Bessent told allies that growth is the only way out of heavy debt loads and that they must do more to confront China’s structural trade imbalances.
  • China buys most of Iran’s discounted oil, giving Chinese industry a cost advantage; new U.S. restrictions under Operation Economic Outcast and pressure on partners to review their China trade are aimed at closing that loophole.
  • The U.S. is also cutting off China’s low-cost energy flows from Iran and Venezuela while other countries add product-specific barriers.
  • Australia imposed new tariffs on Chinese-made train wheels; New Zealand aluminum extruders are lobbying to block dumped Chinese products after the U.S., EU, and Australia already raised tariffs.
  • EU Commission President Ursula von der Leyen warned that if talks do not shrink the EU’s record deficit with China, Brussels will use regulatory tools including its anti-coercion “trade bazooka.”
  • Bessent pointed to China’s trade surplus equal to about 1 percent of global GDP and said Beijing is trying to export its way out of weak domestic demand.
  • Official Chinese PMIs remained below the expansion threshold in both manufacturing and services; unofficial data showing faster manufacturing growth would only enlarge the surplus that other countries must absorb.
  • Picton notes the G20 is not fully united—European ministers bristled at Russia’s presence, Canada still wants room to trade with China, and Bessent is pushing Japan toward higher rates—but the accumulating restrictions are tightening the walls around China’s export engine.

Read the full story:
https://www.zerohedge.com/economics/g20-plans-death-thousand-cuts-chinas-economy

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