China-US G20 Spat Centered on Dispute Over One Key Word
A conflict between Chinese and US officials at a Group of 20 finance leaders meeting this week largely centered on a disagreement over a single word, as reported by sources familiar with the discussions.
Treasury Secretary Scott Bessent openly charged Chinese officials with blocking the group from releasing a joint statement following the two-day meeting in Asheville, North Carolina. The US side linked that stalemate to differing views on language covering topics from essential minerals to debt restructuring.
The most critical sticking point was the addition of the term “non-market” in a sentence regarding trade imbalances, as per reports.
Chinese officials interpreted that term as a covert assault on state-owned enterprises, which are a fundamental component of the country’s economy.
In discussions regarding the phrasing, China suggested a modified statement that would have tackled trade imbalances without highlighting the country's SOEs, as per reports.
Chinese negotiators privately garnered backing from several nations for their proposal, but they could not achieve agreement with the US.
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The closing chair statement from the US included a remark stating nations should consent to “remove non-market policies and practices that worsen imbalances.”
The disagreement underscores ongoing frictions among the globe’s largest economies just weeks before Chinese leader Xi Jinping travels to Washington for an important summit with US President Donald Trump.
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Bessent plays a crucial role in guiding Washington's connection with Beijing, directing trade discussions and set to lead upcoming bilateral conversations on artificial intelligence.
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China’s Ministry of Finance did not respond to an after-hours request for comment. The US Treasury also did not respond right away to a request for comment outside regular business hours.