US-China Clash Over 'Non-Market' Phrase Blocks G20 Consensus
A G20 finance meeting ended without a joint communique after China objected to 'non-market' language, which it viewed as a veiled attack on its state-owned enterprises.
A meeting of Group of 20 finance chiefs in Asheville, North Carolina, concluded this week without a joint communique, with the impasse largely stemming from a dispute over a single phrase, according to people familiar with the talks.
US Treasury Secretary Scott Bessent publicly accused Chinese officials of blocking the group's statement. While the US side pointed to disagreements over issues like critical minerals and debt restructuring, the most significant hurdle was the inclusion of the term "non-market" in a sentence about trade imbalances.
Chinese officials reportedly saw this phrase as a veiled attack on state-owned enterprises (SOEs), which are a cornerstone of their economy. Beijing proposed alternative wording that addressed trade imbalances without singling out SOEs, a suggestion that received some private support from other nations but failed to bridge the gap with Washington.
The final US chair statement included a line urging countries to "eliminate non-market policies and practices that exacerbate imbalances." The US government defines such policies as state interventions that distort global trade, including actions by state-owned firms.
The dispute underscores friction between the world's two largest economies ahead of a planned summit between Chinese leader Xi Jinping and US President Donald Trump. Bessent, who is leading trade negotiations and preparing for bilateral AI talks, reiterated his criticism of China's economic model, pointing to its record $1.2 trillion trade surplus in 2025 and what he termed heavy industrial subsidies.
China's delegation, led by People's Bank of China Governor Pan Gongsheng and Vice Finance Minister Liao Min, defended its position. Pan argued that protectionism and policy unpredictability are key drivers of global imbalances. China's Commerce Ministry has previously rejected accusations of unfair state support, publishing a white paper that accused the US and EU of applying "double standards" by subsidizing their own industries.