US urges G20 to cut trade imbalances, focus on China

U.S. Treasury Secretary Scott Bessent told the G20 finance ministers meeting in Asheville, North Carolina that growing trade imbalances caused by China were "sucking" growth out of the global economy, according to wire reports. China's massive export push, particularly for electric vehicles, semiconductors and other goods, has led to a 23.9% increase in total exports in July compared to the previous year.

Polish Finance Minister Andrzej Domanski noted that China's massive export push has pressured economies across the globe, while EU's Valdis Dombrovskis agreed that China is a major source of economic imbalances.

While Europe acknowledges the issue, there remains uncertainty over whether a joint G20 communique can be agreed upon. China has shown little interest in calls to reduce industrial subsidies and rebalance its economy, and its yuan currency remains significantly undervalued by most measures. Japanese Finance Minister Satsuki Katayama called on G20 counterparts to withdraw arbitrary export restrictions on critical minerals, which she said are harming the global economy.

Chinese officials have been resistant to any language singling out 'non-market economies' or firm words on critical mineral supply curbs.