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 to address global trade and fiscal imbalances, with Treasury Secretary Scott Bessent urging member states to reconsider their trade relationships with China.

In discussions leading up to the G20 meetings, 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.

The push for policy shifts comes amid a period of volatility in global bond markets, which has heightened concerns regarding inflation and rising debt. On Tuesday, Japan’s 10-year government bond yield reached 3% for the first time since 1996, while yields in the United States, Germany, Britain, and the euro zone also saw increases.

**Economic Tensions and Trade Imbalances**
China’s export volume rose 23.9% in July compared to the previous year, driven largely by increased shipments of semiconductors and electric vehicles. While the U.S. has already implemented tariffs and bans on various Chinese products, European officials are also expressing concern.

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 said, emphasizing that all economic blocs must contribute to a global growth agenda.

Polish Finance Minister Andrzej Domanski echoed U.S. concerns, citing China’s undervalued currency and industrial subsidies as primary issues. “Many, many European countries have these high deficits with China, and definitely we need to take action,” Domanski stated, noting that the EU is already implementing measures such as customs duties on e-commerce parcels.

**Negotiation Challenges**
Negotiations regarding a joint G20 communique have proven difficult. According to officials, China has resisted language that would single out “non-market economies” or address restrictions on critical-mineral exports.

Since April 2025, Beijing has placed export restrictions on rare earths, a move Japanese Finance Minister Satsuki Katayama criticized during the summit, stating that such arbitrary restrictions damage the global economy and should be withdrawn.

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

As of September 3, it remains uncertain whether the G20 members will reach a consensus on a joint statement addressing these economic and geopolitical issues.

Article source: japanherald.com | Image credit: SABC News