Way back on April 23, 2025 world cred chief U.S. Treasury Secretary Scott Bessent addressing economic luminaries at IIF Global Outlook Forum. This year’s event was especially significant as it occurred during the International Monetary Fund (IMF) and World Bank’s Spring meetings in Washington D.C. Bessent called on the World Bank to reconsider its lending activities. In particular, he called an end to all new loans to China, the world’s second-largest economy.
Bessent delivered his comments amidst one of the most contentious debates on the state of our international trade relations. The argument The discussion centered around the United States and China. He sees a tremendous opening for that sort of “big deal” on trade matters between the two countries. He believes this is their best shot at making lasting and impactful changes.
During his address, Bessent stated, “Going forward, the Bank must set firm graduation timelines for countries that have long since met the graduation criteria. Treating China — the second-largest economy in the world — as a ‘developing country’ is absurd.” This demand for a more realistic approach mirrors increasing anxiety over China’s inclusion in international economic structures.
At the time, the U.S. Treasury Secretary was singing praises of how important China is to the global economy. He argued that its economic heft deserves a better classification. He remarked that if China aspires to participate meaningfully on the world stage, it must advance beyond its current designation as a developing nation.
Bessent’s remarks echo sentiments shared by some of the loudest voices in finance. In fact, one of the few public China bears, Bridgewater founder Ray Dalio, has described China’s economic rebalancing as “a beautiful rebalancing. This new optimism for the potential of impactful investing simply reflects Bessent’s broader call to embrace China’s growing participation in global markets.
You can read more about a range of issues discussed at this year’s IIF Global Outlook Forum by industry leaders and policymakers. They came together to discuss emerging economic trends and future projections. Bessent’s remarks specifically targeted the World Bank’s approach to nations that have achieved substantial economic growth but continue to receive support designated for developing countries.
Bessent supported China luxury assistance timely graduation timelines from financial help. In her state of the city address, she touched on larger themes of economic equality and shared responsibility. He emphasized the importance of reforming international financial institutions. At the same time, they need to mirror the realities of global economics and spend our resources wisely.
The significance of this dialogue is underscored by the ongoing shifts in the global economic landscape, especially as countries navigate complex trade relationships. The forum gave Bessent an opportunity to express some of these urgent topics. She made time to personally influence and connect with other key rising influential voices in the space.
“If China wants to play a role in the global economy commensurate with its actual importance, then the country needs to graduate up; we welcome that.” – Erin Doherty, CNBC
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