US Democrats press Trump for a trade deal that curbs China's production

15/9/2025 11:35

U.S. Democrats have asked the Trump administration to press China to curb "structural overproduction", essentially overhauling Beijing's economic model, as Treasury Secretary Scott Bessent holds talks with Chinese officials in Spain.



Democratic members of a House of Representatives committee on China said any bilateral trade deal should include "binding requirements" on Beijing to reduce industrial overcapacity, according to a letter they sent to Bessent and other top trade officials on Friday and seen by Reuters.



China produces far more manufactured goods than can be consumed domestically, fuelling huge shipments abroad and price wars at home. While Chinese officials have repeatedly rejected U.S. assertions about overcapacity, Beijing has launched a campaign against deflation and price wars in some sectors.



Bessent and Trade Representative Jamieson Greer, addressed in the letter along with Commerce Secretary Howard Lutnick, began talks in Madrid on Sunday with a Chinese team led by Vice Premier He Lifeng.