China became the only member of the Group of 20 (G20) to oppose a joint statement addressing the issue of low-cost exports from non-market economies inundating the market with inexpensive exports.
“Non-market-based economies pushing out a never-ending stream of cheap exports is not sustainable,” Treasury Secretary Scott Bessent said at a press conference following days of meetings with finance ministers and central bankers in Asheville, North Carolina, Reuters reported on Tuesday.
The joint statement, issued by the Treasury Department later, noted China’s objections to two key provisions. Beijing opposed a paragraph in which the 19 members agreed to eliminate non-market policies and practices that worsen economic imbalances. China also objected to language expressing concern over shipping disruptions in the Strait of Hormuz, a crucial oil route effectively blocked by Iran amid its conflict with the U.S.
Bessent expressed his disappointment at not being able to announce a unanimous joint communiqué but emphasized that the agreement from the 19 other members underscored “the sheer enormity of the problem.”
Bessent Warns of China Trade Flood
This development comes in the wake of Bessent’s previous call for G20 nations to reassess their trade agreements with China. The Treasury Secretary urged Beijing to transition its economy from export-focused to domestic consumption, in an effort to alleviate global imbalances.
On Tuesday, Bessent later told reporters that he had earlier cautioned other nations about the potential flooding of their markets with Chinese goods due to the new U.S. “tariff wall”.
“And unfortunately, I was right,” Bessent said.
China’s export surge is intensifying economic pressures worldwide, with exports rising 23.9% year over year in July amid weak domestic demand. Its growing trade surplus with the EU has fueled calls for tougher import restrictions, while Beijing faces criticism over industrial subsidies and an undervalued yuan. European officials have identified China as a major source of global economic imbalances.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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