China Objects to G20 Statement on Cheap Goods; US Insists on Addressing Imbalances
GeopoliticsMacro
US Treasury Secretary Scott Bessent revealed that China was the only member to disagree with the joint statement following the G20 finance ministers and central bank governors meeting in Asheville, North Carolina. The statement noted that economic systems not based on market mechanisms, which push cheap goods into the market endlessly, are unsustainable. China also objected to a paragraph expressing concern over disruptions to shipping in the Strait of Hormuz, as well as a paragraph praising the role of the International Monetary Fund (IMF) in monitoring global economic imbalances. Bessent said the remaining G20 members will take measures in the coming days or months to address unsustainable imbalances, while the US is in trade negotiations with China, and President Xi Jinping is scheduled to visit the US this month.
