G20 Finance Heads Urge End to Imbalance-Fueling Nonmarket Policies

Asheville, North Carolina, Sept. 1 (Jiji Press)--Finance ministers and central bank chiefs from the Group of 20 major economies called for the elimination of nonmarket policies that fuel global imbalances, according to a chair's statement published after their meeting closed Tuesday.

"We agree that countries should take steps to eliminate nonmarket policies and practices that exacerbate imbalances," the chair's statement said, apparently referring to the issue of Chinese overcapacity.

Beijing objected to parts of the statement, and the finance and monetary chiefs were unable to adopt a joint statement, which requires unanimous support in principle, in their two-day meeting in Asheville, North Carolina.

"Countries with excessive and persistent external surpluses should remove distortions that constrain domestic consumption and that result in an overreliance on exports for growth," the statement said. The call appeared to be a jab at China, which is expanding production with massive subsidies despite slow domestic demand and exporting heavily.

U.S. Treasury Secretary Scott Bessent criticized China at a press conference, saying, "Around the globe, we believe that nonmarket-based economies pushing out a never-ending stream of cheap exports are not sustainable."

[Copyright The Jiji Press, Ltd.]