China blocks G20 economic communique over trade dispute – Bessent

China's refusal to sign a joint communique at the G20 finance chiefs' summit in Asheville, North Carolina led to a significant setback, according to Treasury Secretary Scott Bessent, who reported the incident on September 2 via Bloomberg. Bessent asserted that China, with the largest and unsustainable current account surplus, was the sole dissenter, criticizing non-market economies that perpetually flood markets with cheap exports.

Despite not directly responding to Bessent's remarks, Chinese Vice Finance Minister Liao Min urged G20 members to uphold free trade, foster inclusive economic globalization, and foster a favorable policy environment for international trade and capital flows. The absence of consensus compelled the host nation to abandon the customary joint communique, a situation that has persisted since Russia's invasion of Ukraine.

Consequently, the U.S., representing the G20 presidency, issued a statement endorsed by 19 member nations, including Russia, which underscored the need for excessive external surpluses to alleviate distortions that hinder domestic consumption and overdependence on exports for economic growth. China's dissent was concentrated on paragraphs regarding the unimpeded flow of ships through the Strait of Hormuz, the establishment of a task force to investigate and mitigate trade imbalances, the IMF's authority to oversee such imbalances, and provisions concerning debt restructuring.

Bessent explicitly connected the impasse to China's substantial $1.2 trillion trade surplus, which had risen by 20% from the prior year. Meanwhile, the U.S. trade deficit with China amounted to approximately $200 billion last year, as reported by Bloomberg. The G20 financial summit concluded on September 1, 2026, after a two-day assembly in Asheville, North Carolina.

U.S. Treasury Secretary Scott Bessent engaged in a private meeting with Russian Finance Minister Anton Siluanov, discussing President Donald Trump's Ukraine peace plan on the sidelines of the summit. European allies expressed deep dismay over Russia's reinstatement into the G20, with German Finance Minister Lars Klingbeil confronting Siluanov with the harsh reality that Moscow must cease the war against Ukraine. European leaders also declined to participate in a group photograph with the Russian delegation.