US pushes G20 for tougher action on China trade imbalances

**U.S. Urges G20 to Address Global Trade Imbalances and Chinese Export Policies**

**ASHEVILLE, North Carolina** – The United States is calling on G20 nations to take collective action against global trade and fiscal imbalances, with U.S. Treasury Secretary Scott Bessent urging member states to reconsider their trade relationships with China.

In discussions leading up to the G20 summit, Secretary Bessent advocated for the potential implementation of higher trade barriers on Chinese goods. The U.S. position aims to pressure Beijing to pivot its economic strategy away from export-led growth and toward domestic consumption.

This diplomatic push coincides with volatility in global bond markets, where rising debt and inflation concerns have driven yields higher. On Tuesday, Japan’s 10-year government bond yield reached 3% for the first time since 1996, while yields in the United States, Germany, and the United Kingdom also saw increases.

**Economic Tensions and Trade Imbalances**
The U.S. government has expressed concern over China’s rising export volumes, particularly in sectors such as electric vehicles and semiconductors. According to official data, China’s total exports rose 23.9% in July compared to the previous year.

European Economy Commissioner Valdis Dombrovskis acknowledged that China is a significant source of global economic imbalance but noted that other major economies share responsibility. “China would need to spend more, the U.S. would need to spend less, and the EU would need to invest more,” Dombrovskis stated, emphasizing that all economic blocs must contribute to a sustainable growth agenda.

European officials highlighted that China’s trade surplus with the European Union reached €360.6 billion last year, a 15% increase from 2024. Polish Finance Minister Andrzej Domanski supported the U.S. stance, citing concerns over China’s export subsidies and the valuation of the yuan. He noted that the EU is currently exploring measures, including customs duties on e-commerce parcels, to address these disparities.

**Negotiation Challenges**
Negotiations regarding a joint G20 communique have faced significant hurdles. Officials report that China has resisted language that singles out “non-market economies” or addresses its restrictions on critical-mineral exports.

Since April 2025, Beijing has placed export restrictions on rare earths, a move Japanese Finance Minister Satsuki Katayama described as damaging to the global economy. She urged G20 counterparts to call for the withdrawal of these restrictions.

Additionally, the summit has been marked by diplomatic friction regarding the presence of Russian Finance Minister Anton Siluanov. His attendance—the first in-person appearance by a Russian official at a G20 meeting since the 2022 invasion of Ukraine—drew expressions of dismay from several European ministers, who sought to include strong language condemning the war in the final communique.

As of Wednesday, it remains uncertain whether the G20 members will reach a consensus on a unified strategy to address these global economic and geopolitical challenges.

Article source: russiaherald.com | Image credit: The Economic Times