China-US G20 dispute: How ‘one word’ triggered spat ahead of Trump-Xi summit

A G-20 finance chiefs meeting in Asheville, North Carolina, failed to issue a joint communique due to a disagreement between US and Chinese officials primarily centered around a single phrase.

According to sources familiar with the matter and reported by Bloomberg , both sides did not agree upon whether to use “non-market” phrases in the text or not.

The US insisted on including the phrase “non-market policies and practices that worsen imbalances" to address global trade issues. However, China opposed this and saw it as a subtle attack on its state-owned enterprises, the foundational pillar of the Chinese economy.

To avoid this disagreement, China proposed a alternative phrase aimed at addressing trade imbalances without shedding a light on the nation's SOEs as per sources.

The final chair statement from the US included a line saying countries should agree to “eliminate non-market policies and practices that exacerbate imbalances.”

“It’s unfortunate the Chinese didn’t want to come along,” Bessent told Fox News in an interview on September 2.

The Chinese Ministry of Finance issued a statement, “all parties should take a comprehensive, objective, and balanced view of the issue of global imbalances, and should fundamentally resolve the debt problems of developing countries by promoting development,” while avoiding directly addressing Bessent’s comments.

The spat highlights ongoing economic tensions between the world’s two largest economies especially at a crucial time when US President Donald Trump and Chinese leader Xi Jinping are scheduled to meet in a high-profile summit this month.