G20 finance leaders back action against trade distortions as China objects
G20 finance leaders have backed efforts to tackle trade policies that they say distort global markets and create an excessive reliance on exports, with China the only member not to support the agreement.
The statement, agreed at a meeting in North Carolina, calls on countries with large and persistent trade surpluses to address policies that restrict domestic consumption and contribute to an over-reliance on exports for economic growth.
Listen to this article
Although China was not explicitly named in the final wording, discussions focused heavily on Beijing and the growing volume of low-cost Chinese goods entering international markets.
US Treasury Secretary Scott Bessent argued that the flow of cheap exports from economies shaped by non-market policies was unsustainable.
Washington says its own tariffs on Chinese products have also redirected more Chinese goods towards other markets, particularly Europe.
China's exports rose by almost 24% year-on-year in July, driven by products including electric vehicles and semiconductors.
Its goods trade surplus with the European Union reached more than €360 billion last year, adding to calls in Europe for tougher measures on some Chinese imports.
However, European officials also stressed that China was not solely responsible for global economic imbalances.
European Economy Commissioner Valdis Dombrovskis said both the United States and Europe also had a role to play, while Germany criticised continuing US tariff disputes for adding uncertainty to the global economy.
The G20 statement also addressed restrictions on critical minerals, calling on countries to avoid unnecessary export controls that could disrupt global supply chains.
China has imposed restrictions on some rare-earth exports amid its continuing trade tensions with the United States.
The talks took place against a backdrop of wider concern over inflation, government debt and a sell-off in global bond markets.
Despite differences over how to address the problem, 19 G20 members backed the call for action against trade distortions, with China declining to support that part of the agreement.