China’s engagement in the global system of commerce was roundly criticized by Group of Seven finance chiefs in a show of unity accompanied by a threat of further escalation.
The club of rich-world ministers and central bankers concluded its gathering in the Italian lakeside town of Stresa on Saturday with a communique that cited the world’s second-biggest economy by name and accused the country of hurting the economies of its trade partners.“While reaffirming our interest in a balanced and reciprocal collaboration, we express concerns about China’s comprehensive use of non-market policies and practices that undermines our workers, industries, and economic resilience,” they said. “We will continue to monitor the potential negative impacts of overcapacity and will consider taking steps to ensure a level playing field.”
Those words of warning followed the Biden administration‘s announcement to reimpose tariffs on hundreds of goods imported from China. The escalation in rhetoric could just be the prelude to further tensions if Trump regains the White House in US elections.