How ‘one word’ sparked dispute ahead of Trump-Xi summit

In September, Donald Trump and Chinese leader Xi Jinping are scheduled to meet in a high-profile summit.

In September, Donald Trump and Chinese leader Xi Jinping are scheduled to meet in a high-profile summit.

A G20 finance chiefs meeting in Asheville, North Carolina, failed to issue a joint press release due to a disagreement between US and Chinese officials over a single phrase.

Both sides did not agree on whether to use “non-market” phrases in the text or not, according to sources cited by Bloomberg.

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 an indirect attack on its state-owned enterprises, the foundational pillar of the Chinese economy.

China proposed an alternative phrase aimed at addressing trade imbalances without shedding light on the nation’s SOEs.

The final chair statement from the US said, “eliminate non-market policies and practices that exacerbate imbalances.”

In September, Bessent said in an interview with Fox News, “It’s unfortunate the Chinese didn’t want to come along.”

The Chinese Ministry of Finance issued a statement saying, “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.