Bessent urges IMF, World Bank to take tougher line on China

U.S. Treasury Secretary Scott Bessent on Friday gave specific marching orders for the International Monetary Fund and World Bank to take tougher stances on China's state-driven economic practices as part of his push to get the global lenders to refocus on their core missions.

In a statement to the IMF's steering committee, Bessent said the crisis lender should strengthen its country surveillance activities with "objectivity and evenhandedness." He also said the World Bank should end its support for China and shift resources to countries with greater needs.

"The IMF should not shy away from asking difficult questions, more clearly highlighting internal and external imbalances, deepening its understanding of how industrial policies in large economies such as China contribute to those imbalances, explaining their potential harmful spillovers, and recommending appropriate corrective actions," Bessent said in the statement to the International Monetary and Financial Committee.