China was the sole dissenter at the recent G20 finance ministers and central bank governors meeting, preventing a unanimous joint communique. U.S. Treasury Secretary Scott Bessent stated that the disagreement stemmed from China's objection to language addressing its "large and unsustainable current account surplus" and its reliance on exports for economic growth. This marks a growing concern among G20 nations about the impact of Chinese exports on global industries.
The U.S. Treasury instead issued a chair's statement, indicating that 19 out of 20 members agreed to the proposed language. China specifically objected to four sections: one concerning the Strait of Hormuz and ongoing conflicts; two focused on global economic imbalances, including export reliance and increased IMF scrutiny; and one on sovereign debt restructurings. Bessent emphasized that 19 countries agreeing to address these issues highlights the "sheer enormity of the problem" posed by what he termed "non-market-based economies pushing out a never-ending stream of cheap exports."
The chair's statement included a footnote noting China's dissent on a paragraph urging countries to eliminate non-market policies that exacerbate imbalances, particularly for those with "excessive and persistent external surpluses." These policies, the statement argued, create "harmful spillovers to global, regional, and domestic markets and increase economic dependency." China's trade surplus reached a record $1.2 trillion in 2025, while the U.S. had a trade deficit of approximately $200 billion with China in the same year.
Bessent indicated that the other G20 members are expected to take action in the coming "days, weeks or months" to address this "unsustainable equilibrium." While acknowledging some limited discussions on artificial intelligence with Chinese representatives, Bessent also mentioned discussions with allies, Russia, and China regarding potential economic actions against Iran, a major oil supplier to China. Despite disagreements, Bessent noted common ground with China on ensuring the free flow of oil through the Strait of Hormuz and preventing Iran from acquiring nuclear weapons.
