China dissented at the G20 finance meeting in Asheville, blocking consensus on a chair’s statement about global economic imbalances and non-market practices, with 19 other members backing the language.

The chair’s statement urged the IMF to deepen analysis of imbalances, including policy distortions and spillover effects, and to provide detailed scenario analyses on the costs of inaction.

European officials saw the missed consensus as a missed opportunity to address imbalances, while some ministers criticized Trump-era trade policies but remained cautiously optimistic about tackling overcapacity more broadly.

The statement endorsed emphasis on growth while noting impediments such as regulatory burdens, tax issues, investment gaps, and labor mobility weaknesses, and highlighted financial literacy as foundational to financial health.

Treasury Secretary Scott Bessent warned that non-market policies are unsustainable and urged a shift from export-led growth to increased domestic consumption.

The broader context includes the Trump administration’s strategy against Iran, leveraging secondary sanctions, raising questions about implications for China and its trade with Iran.

China’s overcapacity and export surge contribute to global concern, with a European trade surplus and ongoing U.S. tariffs addressing overcapacity cited as backdrop.

Disputes over China’s manufacturing overcapacity and expanding exports continue to pressure domestic industries and global trade balances.

Bessent portrayed China as sharing some interests with Iran on trade dynamics and suggested it is up to China to move toward resolution, ahead of a potential late-September visit to the U.S.

The chair’s statement spoke of wars and conflicts in general terms, avoiding explicit references to Russia’s war or Middle East conflicts.

Bessent had urged rebalancing away from export reliance, warning of a flood of Chinese goods under a new U.S. tariff stance.

Disagreement over trade and imbalances underscored difficulties in achieving consensus ahead of Xi Jinping’s summit with Trump in Washington and the Miami G20 leaders’ gathering.