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Beijing Rejects G20 Criticism Over Export Reliance and Industrial Overcapacity
cnbc · 2026-09-03
PDD
China has pushed back against G20 concerns regarding its export-heavy economic model, labeling the critique as a veiled attempt to promote protectionism.
What Happened
Diplomatic Tensions at G20: China has formally dissented from a joint G20 statement that criticized economies for maintaining an unsustainable reliance on cheap exports. Beijing’s Commerce Ministry characterized these complaints as a strategic effort by the U.S. and Europe to pressure Chinese industry under the guise of addressing global imbalances.
Trade and Protectionism Concerns: Spokesperson Ling Huang argued that utilizing multilateral forums to highlight so-called overcapacity is essentially a form of protectionism. China maintains that such rhetoric disrupts the established global trade order and threatens the long-term health of the international economy.
Sanctions and Geopolitical Friction: The dispute extends to U.S. sanctions against Chinese entities accused of facilitating evasion of measures against Iran. Beijing has demanded that Washington immediately correct these practices, which it views as an unjustified targeting of its citizens and companies.
European Trade Relations: Tensions are also rising with the European Union, as Brussels pushes for concrete results to reduce trade deficits by October. China has warned France against implementing new laws targeting low-cost e-commerce platforms, threatening retaliatory measures if market access is restricted.