Bessent's warning was blunt: "Policymakers around the world are having difficult discussions about how to sustain market-based systems amid distortionary policies from some economies that skew competition and hurt employment." He added, "The IMF was founded to prevent these kinds of distortive policies and negative spillovers, and must exercise its voice on this critical issue or risk being sidelined."
In prepared comments sent to the steering panels of the IMF and the World Bank, he urged the fund to be "strengthening its analysis and engagement on the role non-market policies and practices and exchange rates play in driving external imbalances." The statements were directed to officials gathered for the institutions' annual meetings in Bangkok. Bessent did not attend the meetings and had his deputy go in his place.
He did not call out China by name in this statement, but he has repeatedly argued that Beijing's approach keeps the world's No. 2 economy export heavy while holding back consumer demand at home. Last month, he told US lawmakers the IMF is in "advanced discussions with China on the nature of their imbalances and the potential threats to global financial stability that those imbalances may pose."
Bessent also pointed to Group of 20 tensions. In September, he led a G20 discussion and stated that 19 of 20 members backed a US-led line that "non-market based economies pushing out a never-ending spring of cheap exports is not sustainable." He said China prevented full consensus, so there was no communique. Earlier Wednesday, China reported a jump in September exports, putting its trade surplus on track to surpass last year's $1.2 trillion record.
When policy debates touch global markets, it helps to get clear daily context, so sign up for the free Market Briefs
Bessent's note to the International Monetary and Financial Committee and the World Bank Development Committee also pressed the bank to build more self-dependence in countries, urging the World Bank to remove restrictions on backing projects in natural gas as well as in upstream oil-and-gas activities.
With so many moving parts in the economy, a quick reliable update saves time, subscribe to the Market Briefs newsletter
