China Accuses G20 of Protectionism as Trade Rift Over Exports Deepens

China has accused fellow G20 members of promoting protectionism after a joint statement from the group took aim at economies that rely heavily on exports, a clear reference to Beijing’s trade surplus and industrial overcapacity. The Commerce Ministry’s pushback signals a deepening rift between China and its major trading partners as multilateral trade talks intensify ahead of key diplomatic meetings later this month.

The dispute erupted after U.S. Treasury Secretary Scott Bessent stated that 19 of the G20 members had agreed to address the “unsustainable equilibrium” resulting from a “stream of cheap exports.” China was the sole G20 member to dissent from the statement over references to such economic imbalances. In response, Commerce Ministry spokesperson Ling Huang accused the United States and Europe of using claims about economic imbalances and overcapacity as “an excuse to pressure and restrict China.” She argued that raising these issues in multilateral forums like the G20 amounts to promoting protectionism and warned that such actions would disrupt global trade.

The confrontation is unfolding against a backdrop of multiple trade disputes. China is also pushing back against France’s new law targeting low prices from Chinese e-commerce platforms like Temu. Huang warned that if France persists, China will take necessary measures and that France will bear the consequences. Meanwhile, the European Union has set an October deadline for Beijing to deliver “concrete results” on reducing the EU’s record trade deficit with China, with EU Trade Commissioner Maros Sefcovic threatening “harsher measures” if progress is insufficient. China has responded by insisting that demands should not be made unilaterally and that threats to close markets are unacceptable.

The friction extends beyond trade imbalances to sanctions. Huang also criticized the latest U.S. anti-Iran sanctions, which can target foreign companies or individuals accused of helping Iran, including Chinese banks. Bessent earlier announced that entities facilitating money laundering or sanctions evasion for Iran could be cut off from the U.S. financial system. Huang called on the U.S. to “immediately correct its wrong practices” and lift sanctions on Chinese companies and citizens.

At stake is the broader global trade architecture. China’s complaint that its trading partners are using multilateral forums to pressure it reflects a fundamental disagreement over the causes of global trade imbalances. The U.S. and Europe view China’s export-led growth model and industrial policy subsidies as a source of market distortion, while Beijing sees any criticism as a pretext for protectionism. The timing matters: Chinese President Xi Jinping is expected to travel to Washington later this month, adding high-stakes diplomatic context to trade tensions that show little sign of easing.

The G20 exchange is a blunt signal that the trade consensus among major economies has frayed. With the U.S., EU, and China all hardening their positions, the coming months will test whether diplomacy can manage the friction or whether unilateral measures will escalate further.