China Blocks G20 Joint Statement Criticizing its Excessive Export-Led Growth Model

From 31 August 2026 to 1 September 2026, US Treasury Secretary Scott Bessent, alongside newly appointed Federal Reserve Chair Kevin Warsh, chaired and hosted the G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting in Asheville, located in western North Carolina, USA. The main theme of this meeting was ‘Promoting Shared Prosperity through Resilient, Sustainable, and Inclusive Growth.’

As host, the US used its prerogative to invite the Russian Finance Minister Siluanov. The EU expressed sharp criticism of this decision, as European countries view Russia as an aggressor against Ukraine, and the conflict has upended many European economies. Finally, the Russian Minister did not appear in the traditional family photo.

On the other hand, the US fully utilized the Meeting to ramp up pressure on Iran and China. In the case of Iran, the US reiterated the need for solidarity to apply economic pressure on the Iranian regime.

Secretary Bessent also pointed fingers at China’s excessive export-led economic model that creates trade imbalances. Bessent justified Trump’s tariffs to counteract the huge trade surplus enjoyed by China. He urged other G20 countries to follow the American lead to apply tariffs on Chinese goods to protect their local manufacturing and economy.

Despite the punitive tariffs imposed by the USA, China’s international trade volume exceeded USD 4 trillion, with a trade surplus of over USD one trillion. The US even accused China of using third-party countries as transhipment hubs to fake the country of origin. It appears that China managed to diversify or find a workaround for the tariffs and still managed to beat expectations by growing its exports.

China asserted that global trade results from its hard work and comparative advantages derived from its economies of scale, manufacturing efficiency, and logistical optimization. China took the lead in various product categories as it painstakingly enacted policies to develop ecosystems to control whole supply chains.

Due to the difference in perspective, the Meeting was unable to issue a consensual joint statement. As a workaround, Secretary Bessent plans to issue a Chairman’s Statement. The next major event for the Finance Track is scheduled to take place in Bangkok, Thailand, on 15 October 2026, before the G20 Leaders’ Summit scheduled to take place in Miami in December 2026.