Bessent’s growth-focused agenda in Asheville overshadowed by diplomatic friction and press access disputes

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The United States’ decision to welcome Russia back to the G20 finance ministers’ meeting on Monday – while simultaneously denying credentials to certain journalists – has overshadowed Washington’s bid to steer the two-day gathering toward a shared agenda of global economic growth.

The meeting in Asheville, North Carolina, comes at a turbulent moment for the world economy, buffeted by an energy shock from the Iran war, rising tensions over China’s massive goods trade surplus, and uncertainty over how a surge in AI investment will ultimately play out.

Russia’s Return Draws Sharp Rebukes

As U.S. Treasury Secretary Scott Bessent opened the proceedings, several ministers were surprised and dismayed to see Russian Finance Minister Anton Siluanov seated at the G20 table – the first time Russia has attended the forum in person since its invasion of Ukraine in 2022.

Polish Finance Minister Andrzej Domanski did not hide his displeasure. “We do not trust Russia. They lie constantly and you need to be really, really cautious while discussing with them,” he told Reuters, stressing that Russia was the aggressor in its conflict with Ukraine. “So for me it would be very difficult to have any kind of conversation with Russia.”

Siluanov held a bilateral meeting with Bessent that covered financial cooperation within the G20 framework, according to Russia’s finance ministry. A U.S. official said the focus was on President Donald Trump’s peace plan for Ukraine, and a source familiar with the discussions said Bessent made clear that no economic relief for Russia or agreements on other issues were possible until the war ends.

German Finance Minister Lars Klingbeil said Europe was preparing a further package of sanctions against Russia, calling Siluanov’s presence a “quite troubling” signal for U.S. cooperation with that effort. “I would have wanted greater clarity from the American side that he should not be received here as a normal guest.”

European officials also opposed appearing in the traditional “family photo” of G20 finance ministers and central bank governors – and that photo was ultimately taken without Siluanov. His appearance marks a stark contrast from April 2022, when even his virtual participation in a G20 meeting in Washington drew broad condemnation and prompted a walkout by officials from the U.S., Britain, Canada and the European Central Bank.

Bessent: Growth Is the Only Way Out of Global Debt

Bessent told reporters that stronger growth was the best path out of a debt overhang built up since the 2008 global financial crisis and the COVID-19 pandemic. Global debt levels hit a record of nearly $353 trillion earlier this year, fueling concerns about financial stability and prompting some investors to reappraise even traditionally safe havens such as U.S. Treasuries.

“The world is awash in debt post-GFC, post-COVID, and the only way for us to get out of this is to grow our way out of this,” Bessent said at the start of the meeting. “I’m confident that a lot of the leaders are very receptive to this.”

The Treasury took the unusual step of inviting private-sector luminaries to participate in some sessions on promoting growth, reflecting the Trump administration’s view that growth is best served by deregulation, increased energy production, and fostering innovation.

Bessent told one session that global growth had underperformed its potential for too long and that causes could no longer include “policy failures of our own making.” He identified several impediments that G20 countries needed to address: “excessive regulatory and administrative burdens, poorly designed financial incentives and tax systems, insufficient public and private investment, internal market fragmentation, and gaps in workforce skills and mobility.”

Press Access Denials Draw Criticism

Another flashpoint was the Treasury’s decision to deny media credentials to certain journalists, including teams from Bloomberg News and specific reporters from the New York Times and the Wall Street Journal.

“I believe the press has a completely legitimate interest in reporting openly and freely on this G20 summit,” Klingbeil said. “I consider it unacceptable for journalists or entire editorial teams to be excluded.”

A Treasury spokesperson defended the decision, noting that over 300 media were covering the event – including another New York Times reporter – and that access comes with a “responsibility to report factual information consistent with established journalistic standards.”

Fed Chair Welcomes Global Investment Surge

Federal Reserve Chairman Kevin Warsh, attending his first international economic policy meeting since taking office in May, said he was looking forward to learning more about growth prospects among member economies. He declared that an era of “secular stagnation” marked by a lack of innovation appeared to be over, driven by an AI investment boom.

“If I were to try to characterize this moment, it would be one of a global investment surge,” Warsh said, adding that it had reversed the “global savings glut” that in the past had kept capital idle due to a shortage of investment opportunities.

Bessent Downplays Debt Concerns, Targets China

Ahead of the talks, Bessent played down mounting market scrutiny of U.S. debt levels, arguing the United States is in a stronger position than many advanced economies because it continues to grow, even while running large budget deficits. “First of all, I’m not sure where the bond market turmoil is,” he told Reuters on Sunday. “What’s important, too, is that we are growing.”

On Tuesday, the U.S. will focus on reducing global trade imbalances, and Bessent said he would urge G20 members to re-examine their terms of trade with China to pressure Beijing to rebalance its economy away from exports and toward domestic consumption.

“The world cannot have a China with a $1.2 trillion trade surplus,” Bessent said. “In China, the economy is quite weak, and they are trying to export their way out of it, and they need to rebalance their economy.”

Economists say the U.S. must also reduce its growing fiscal deficits as part of this rebalancing effort. “We need a more balanced world,” French Finance Minister Roland Lescure said. “We know that every big zone, whether China, the U.S. and Europe, has got their own homework to do.”