In Asheville, G20 finance ministers \u2013 with the exception of China \u2013 backed a call to counter non-market policies and trade distortions that increase individual economies\u2019 dependence on exports. China objected to some of the provisions in the chair\u2019s statement. The discussion centred on China\u2019s export model and its impact on other markets.<\/p>\n
Briefly about the main points<\/strong><\/p>\n The agreed text states that countries must eliminate non-market policies that exacerbate economic imbalances. Particular emphasis is placed on countries with excessive and persistent external surpluses: they are expected to remove distortions that restrict domestic consumption and force them to rely on exports as their main source of growth.<\/p>\n US Secretary of the Treasury Scott Bessent<\/strong> stated that the endless flow of cheap export goods from non-market economies is unsustainable. According to him, the fact that the majority of participants supported this position demonstrated the scale of the problem.<\/p>\n Bessent stated that the US\u2019s tough tariffs had already diverted some Chinese goods to other markets, and suggested that the G20 consider imposing higher barriers on these products. Amid weak domestic demand, China is ramping up exports of electric vehicles, semiconductors and other goods: in July, its total exports rose by 23.9% year-on-year.<\/p>\n China\u2019s trade surplus in goods with the EU reached \u20ac360.6 billion last year, which was 15% higher than the figure for 2024. European Commissioner for Economic Affairs Valdis Dombrovskis described China as a significant source of imbalances, whilst pointing out that the US and Europe must also play their part in reducing them.<\/p>\n The UK has stated that it will maintain pragmatic trade relations with Beijing whilst seeking to reduce imbalances. Canada, which has strengthened its economic ties with China since the start of the year, has indicated that it will engage with clear safeguards in place. IMF Managing Director Kristalina Georgieva told Reuters that Beijing recognises the need for action but also expects coordinated steps from other countries, in particular a reduction in US budget deficits.<\/p>\n In April 2025, China introduced export restrictions on rare-earth elements<\/a> in response to the US President\u2019s tariffs Donald Trump<\/strong>. The restrictions affected not only American companies but also others.<\/p>\n Japan\u2019s Minister of Finance Satsuki Katayama<\/strong> told her colleagues that arbitrary restrictions on exports of critical minerals are damaging to the global economy. In a statement, the Presidency G20<\/a> Countries have been urged to avoid unnecessary export restrictions so that global supply chains can function normally.<\/p>\n The two-day meeting took place against a backdrop of a deepening sell-off in global bond markets, fuelled by concerns over debt levels and inflationary pressures. The yield on ten-year Japanese government bonds rose to 3% \u2014 its highest level since 1996.<\/p>\n\n
From surpluses to domestic demand<\/h2>\n
The US, Europe and Canada are responding differently to Chinese exports<\/h2>\n
Critical minerals and risks to supply chains<\/h2>\n
The debt sell-off has heightened concerns about global growth<\/h2>\n