BEIJING — China has accused other G20 nations of "promoting protectionism," after they criticized economies that rely heavily on exports.
U.S. Treasury Secretary Scott Bessent on Tuesday said 19 of the G20 members agreed to address the "unsustainable equilibrium" resulting from a "stream of cheap exports." China was the only G20 member to dissent from a joint statement over references to such "imbalances."
The Commerce Ministry on Thursday pushed back on trade complaints from the U.S. and Europe, calling them "an excuse to pressure and restrict China."
"China believes that taking advantage of the G20 and other multilateral mechanisms to hype up so-called 'economic imbalances' and 'overcapacity' is essentially promoting protectionism," Ling Huang, Commerce Ministry spokesperson, said in Chinese, translated by CNBC.
"China is firmly opposed," she said during a weekly press conference. "This will only disrupt the global economic and trade order, and harm the healthy development of the global economy."
The words come amid a flurry of different multilateral meetings and growing anticipation for Chinese President Xi Jinping's trip to Washington, D.C. later this month.
When asked by CNBC about the latest U.S. anti-Iran sanctions, which can extend beyond Iranian entities to foreign companies or individuals accused of helping Iran, Huang said the U.S. should "immediately correct its wrong practices and lift sanctions against relevant Chinese companies and citizens."
"Despite repeated requests from China, the U.S. has used Iran as an excuse for repeatedly imposing sanctions on Chinese companies and citizens, to which China is strongly dissatisfied and firmly opposes," she said.
Early last week, Bessent announced that any entity, including Chinese banks, that facilitates money laundering or sanctions evasion on behalf of Iran could be cut off from the U.S. financial system.
Huang on Thursday also urged France to halt implementation of a new law aimed at curbing the low prices charged by Chinese e-commerce companies such as Temu.
"If France persists in its course of action, China will take necessary measures to safeguard the legitimate rights and interests of Chinese enterprises, and France will bear all consequences," she said.
China and the European Union more broadly have also been engaged in trade talks this summer as Europe wants to reduce its record trade deficit with China by October. EU Trade Commissioner Maroš Šefčovič warned in an interview with Euronews this week that Beijing must deliver "concrete results" by October or face "harsher measures."
Huang said China is willing to work with the EU, but said demands should not be made unilaterally, and threats should not be made to close markets.
Facts Only
* The U.S. Treasury Secretary Scott Bessent stated that 19 of the G20 members agreed to address the "unsustainable equilibrium" from a stream of cheap exports.
* China was the only G20 member to dissent from a joint statement referencing such "imbalances."
* The Commerce Ministry pushed back on trade complaints from the U.S. and Europe, calling them an excuse to pressure and restrict China.
* A spokesperson stated that using multilateral mechanisms to hype up "economic imbalances" promotes protectionism.
* China expressed opposition to actions that would disrupt the global economic and trade order.
* Regarding U.S. anti-Iran sanctions, a spokesperson requested the U.S. correct its practices and lift sanctions against relevant Chinese companies and citizens.
* A spokesperson urged France to halt implementation of a new law concerning low prices from Chinese e-commerce companies like Temu.
* China stated it would take necessary measures if France persisted in its course of action regarding Chinese enterprises.
* The European Union seeks to reduce its trade deficit with China by October.
Executive Summary
China has asserted that actions by other G20 nations in criticizing economies dependent on exports constitute protectionism, a claim made in response to discussions about economic imbalances stemming from cheap exports. The U.S. Treasury Secretary noted that nineteen G20 members agreed to address the "unsustainable equilibrium" created by a stream of cheap exports, although China was the only member to dissent from a joint statement regarding these imbalances.
The Chinese Commerce Ministry rejected trade complaints from the U.S. and Europe, characterizing them as attempts to pressure and restrict China. A spokesperson stated that leveraging multilateral mechanisms to emphasize "economic imbalances" and "overcapacity" promotes protectionism, which disrupts the global economic order. Furthermore, in discussions regarding U.S. anti-Iran sanctions, China demanded the U.S. correct its practices by lifting sanctions against Chinese entities involved in facilitating sanctions evasion. China also urged France to halt new legislation affecting low prices from Chinese e-commerce companies, threatening countermeasures if action is not taken.
The situation is framed by ongoing trade negotiations between China and the European Union, driven by Europe's goal to reduce its trade deficit with China. While China expressed willingness to cooperate with the EU, it cautioned against unilateral demands or threats to close markets.
Full Take
The narrative centers on a perceived conflict between free-market economic practices, exemplified by export-driven economies, and state-level concerns over global stability and national interest. The core tension lies in the use of economic terminology—specifically "imbalances" and "overcapacity"—as leverage within multilateral forums. China’s position reflects a strategic desire to control the narrative surrounding global trade dynamics, suggesting that external criticism is not merely policy disagreement but an attempt to enforce a specific, asymmetrical economic order. The subsequent demands regarding sanctions and trade restrictions demonstrate an effort to reassert sovereign control over economic flows, shifting the focus from abstract economic theory to tangible consequences for national interests.
This dynamic suggests a pattern where systemic concerns are translated into immediate, transactional disputes. The framing of protectionism as being promoted by external actors allows China to position itself as the defender of global order against perceived destabilizing forces. However, the reaction against specific actions—such as sanctions or price regulation—indicates an underlying resistance to any imposed framework that limits sovereign economic autonomy. The friction between large-scale multilateral talks (EU/China trade) and targeted bilateral disputes (US/Iran sanctions) reveals a strategic choice: engaging in broad coordination while simultaneously fighting for granular control over specific economic boundaries and enforcement mechanisms.
The implications point toward a contest over the definition of acceptable global economic equilibrium. If external pressures are viewed as inherently protectionist, then any state action taken to manage trade deficits or industrial capacity becomes a zero-sum game where adherence to perceived self-interest supersedes generalized multilateral consensus. The ongoing negotiation between China and the EU highlights the difficulty in reconciling shared goals (like deficit reduction) with divergent national priorities regarding economic sovereignty and regulatory control.
Bridge Questions: If China’s assertion of protectionism is viewed as an attempt to define a new global economic paradigm, what alternative definitions of "sustainable equilibrium" could genuinely satisfy all major economic powers? How do the differing responses to trade complaints reveal underlying structural conflicts between multilateral governance and national economic self-interest? What are the long-term consequences if the focus remains on transactional disputes rather than addressing the root structural causes of perceived imbalances?