United States Urges G20 to Raise Trade Barriers Against China

The United States is urging G20 nations to address global trade and fiscal imbalances by reconsidering trade relationships with China and implementing higher trade barriers. Treasury Secretary Scott Bessent stated these measures aim to pressure Beijing to shift its economy from export-reliance toward domestic consumption.

European officials acknowledged China as a major source of imbalance but argued for a broader approach. European Economy Commissioner Valdis Dombrovskis noted that while China must change, the U.S. needs to reduce fiscal deficits and the EU must increase investment. Polish Finance Minister Andrzej Domanski supported the view that China's trade surplus and export subsidies create significant problems for Europe.

Negotiations for a joint G20 communique remain stalled as China opposes language targeting non-market economies and restrictions on critical minerals. These tensions coincide with a global bond market sell-off, which saw Japan's 10-year government bond yield reach 3% for the first time since 1996. Additionally, European ministers expressed dismay over the in-person attendance of Russian Finance Minister Anton Siluanov, marking the first such participation since the 2022 invasion of Ukraine.