US officials called on Group of 20 (G20) finance leaders on Monday to prioritize economic growth as a key strategy to address concerns over rising global debt levels. The two-day meeting, held in Asheville, North Carolina, comes amid mounting pressures on the global economy from an energy shock linked to the ongoing conflict involving Iran, rising trade tensions related to China's significant goods trade surplus, and uncertainty surrounding the impact of increased investment in artificial intelligence.

Global debt reached an unprecedented $353 trillion earlier this year, raising fears about financial stability and prompting some investors to reassess traditional safe assets such as US Treasury securities. US Treasury Secretary Scott Bessent emphasized that sustainable growth is essential to managing this debt burden. Referring to past crises, including the 2007-2009 global financial crisis, Bessent stated that the international community must "grow our way out" of current debt challenges and expressed optimism about the willingness of G20 leaders to pursue this approach.

Federal Reserve Chairman Kevin Warsh, participating in his first international economic summit since assuming office in May, described the current period as marked by a "global investment surge" that has reversed a prolonged "global savings glut," which previously limited capital deployment due to a shortage of investment opportunities.

During a session with business leaders, reflecting the Trump administration's economic stance, officials highlighted deregulation and increased energy production as means to stimulate growth. Bessent criticized continued underperformance in global growth, attributing it partially to avoidable policy shortcomings. He identified key obstacles across G20 countries, including excessive regulatory burdens, inefficient financial incentives and tax systems, inadequate public and private investment, fragmented internal markets, and workforce skill and mobility gaps.

Bessent pointed to robust growth in the United States, which has benefited in part from investments in AI infrastructure. These investments have also contributed to rising US Treasury yields by absorbing savings that might otherwise have suppressed borrowing costs. Addressing concerns about US debt levels, he downplayed market volatility, noting that the US economy’s growth and budgetary dynamics placed it in a comparatively strong position among advanced economies.

A top priority for the US during the meeting was to gain support for further isolating Iran through potential secondary sanctions, aiming to resolve the standoff in the Strait of Hormuz that has disrupted global energy supplies. Additionally, US officials sought to encourage G20 members to reassess their trade relationships with China, urging Beijing to reduce its substantial trade surplus—valued at approximately $1.2 trillion—and to shift its economic model away from export dependence toward greater domestic consumption.

Bessent reported holding a “very robust meeting” with China’s central bank governor Pan Gongsheng prior to the official talks but declined to provide further details. The discussions underscored ongoing concerns about China’s economic weaknesses and the global implications of its trade and growth policies.