The G20 finance ministers and central bank governors meeting held in the United States concluded on September 1 without a joint statement due to opposition from China. China blocked the U.S.-led global economic solutions by opposing issues such as "freedom of navigation in the Strait of Hormuz" and "resolving trade imbalances."
The U.S. Treasury Department announced a chair's statement consisting of 17 points instead of a joint declaration after the meeting. The statement focuses on cooperation among member countries to promote global economic growth, address global imbalances, enhance global financial literacy and education, improve global debt structures, and modernize financial sector regulations.
However, the U.S. Treasury stated that the joint statement was not achieved because China opposed points 4, 10, 11, and 13. Point 4 addresses freedom of navigation in the Strait of Hormuz, emphasizing concerns over ongoing disruptions in energy trade and the necessity of ensuring safe and predictable navigation worldwide to support sustainable growth.
Point 10 discusses resolving trade imbalances, stating that countries should take measures to eliminate non-market policies and practices that exacerbate imbalances. It specifically mentions that countries with excessive and persistent trade surpluses should remove structural distortions that suppress domestic consumption and improve growth structures that overly rely on exports. Point 11 calls for enhanced monitoring of distorted policies by the International Monetary Fund (IMF) and the Organization for Economic Cooperation and Development (OECD), while point 13 relates to measures concerning countries with significant external exposure, which appear to target China.
U.S. Treasury Secretary Scott Vessen said in a press conference that China was the only country to oppose the statement, while other G20 nations would take steps to reach solutions to this unsustainable balance within "days, weeks, or months." He added, "We believe that a non-market economy that continually pushes low-cost exports is not sustainable."
As China has expressed opposition to the U.S.-led approach to global economic issues, trade imbalances and other matters are likely to be key topics during Chinese President Xi Jinping's upcoming visit to the U.S. this month.
Meanwhile, Secretary Vessen indicated that there are "more commonalities than differences" with China regarding Iran issues. He noted, "China agrees that Iran should not possess nuclear weapons. China also agrees that there should be free maritime trade in the Strait of Hormuz, as it sources 50% of its energy from the Gulf region. Therefore, I believe that moving toward a solution depends on China."
* This article has been translated by AI.
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