US economic agenda dominates G20 ministerial summit in Asheville

G20 finance ministers gathered in Asheville, North Carolina, against the backdrop of rising global interest rates and a massive debt burden.

Although the pursuit of stronger growth formed the summit’s primary agenda, specifics on the matter varied from country to country.

US Treasury Secretary Scott Bessent streamlined the G20 finance agenda by focusing on economic growth.

In his opening address at the finance meeting, Bessent argued that years of “mission creep” had diverted the group from its core purpose.

On this year’s agenda, the space dedicated to climate change and inequality, which had served as the main docket items of G20 meetings in recent years, was substantially reduced.

This development caused significant unease, particularly among European delegations.

Instead, the US focused on deregulation, private sector investment, global commercial imbalances, and government debt.

US officials state that G20 members largely agree with Bessent on the necessity of prioritising growth.

However, they acknowledge that what works in one economy may not yield the same outcome in another.

For example, Under Secretary of the Treasury Erin Browne said in an interview with Axios on the sidelines of the conference: “I think the principles Secretary Bessent has laid out; these are well-understood and agreed-upon principles,” adding:

“However, different economies face different challenges. We have members here from the African Union, and they face challenges very different from Germany, for instance.”

Referring to countries that receive more from foreign trade and investment than they send, Browne said: “You could be a surplus country because you do not have enough investment demand, or you could be a surplus country because you do not have enough consumer demand.”

Federal Reserve Chair Kevin Warsh struck a similar note in his opening remarks, speaking of “a massive shift in the global economy” and noting: “We are all experiencing this a bit differently.”

Although climate change was absent from the official agenda, European officials stressed on the sidelines of the meetings that the issue remains a priority.

European Commissioner Valdis Dombrovskis told reporters: “This is part of the problem surrounding economic growth and economic resilience,” arguing that they are witnessing an increasing number of extreme weather events that damage both the economy and public finances.

Dombrovskis continued:

“This new energy deficit arising from the Iran war once again demonstrates the need to reduce our dependence on fossil fuels and strengthen green manufacturing.”

Meanwhile, China’s export surge is exerting far greater pressure on Europe’s growth model than on that of the US.

“China shock 2.0” is devastating Germany’s manufacturing sector and forcing officials to consider tougher measures.

Indeed, Commissioner for Economy and Productivity Dombrovskis said: “It is important to move from analysis to action.”

US tariffs have contributed to redirecting a portion of Chinese goods toward other markets.

“I warned the rest of the developed world and top emerging nations that when the US erects a tariff wall, surplus goods from China will wash up on their shores. And unfortunately, I was proven right,” Bessent said, adding:

“This is a problem for the G7-plus-plus excluding the US. We took our measures… and now the countries receiving these goods must do something about it.”

Bank of England Governor Andrew Bailey, who chairs the Financial Stability Board, warned G20 ministers ahead of the meetings that the war with Iran had produced a “significant supply shock” triggering energy inflation and rising interest rates.

Bessent sought to downplay the long-term economic risk, saying: “We will overcome this Iran conflict, and the world will become a better place for it.”

China objects to G20 communique

Bessent said on Tuesday that China was the sole G20 member to oppose a joint communique stating that “it is unsustainable for non-market economies to maintain an unending flow of cheap exports.”

Bessent indicated that other G20 members would act “in the coming days, weeks, or months” to “reach a solution regarding this unsustainable balance.”

The communique released by the Treasury Department later on Tuesday includes a footnote stating that China objected to a paragraph in which 19 members agreed that “countries must take steps to eliminate non-market policies and practices that exacerbate imbalances.”

The paragraph in question states: “In particular, countries running excessive and persistent external surpluses must eliminate distortions that constrain domestic consumption and lead to an overreliance on exports for growth.”

The Treasury Department noted that China also objected to a paragraph expressing concern over ongoing shipping disruptions in the Strait of Hormuz, a vital oil transit corridor effectively blocked by Iran in its war with the US.

China further opposed paragraphs praising the International Monetary Fund’s (IMF) “surveillance of global imbalances” and specifically highlighting “countries that owe a significant portion of their external debt to G20 members.”

At a press conference, Bessent said, “I had hoped to announce a unanimously adopted joint communique today,” while stressing that the agreement among the other 19 members “demonstrates how vast the problem is.”

Bessent also remarked on the Iran and China issue:

“On Iran, we have more common ground with China than differences. China agrees that Iran cannot possess nuclear weapons. China also agrees that there must be freedom of navigation in the Strait of Hormuz. China sources 50% of its energy from the Gulf. Therefore, I believe it is up to China, or China’s responsibility, to make efforts toward a solution. We will see how they implement this.”

Mixed signals from Europe and Canada on China

At a press conference, Dombrovskis said China is the primary source of economic imbalances, while adding that the US and Europe also have roles to play in resolving them.

Speaking more directly, German Finance Minister Lars Klingbeil said the US- and Israeli-led war with Iran, alongside ongoing US tariff disputes, are the primary drivers of the uncertainty hampering the global economy:

“Uncertainty is poison for economic growth. The tariff conflicts pursued by the US, such as the current dispute with Canada, destroy confidence.”

The UK stated that attempting to curb imbalances is a delicate matter, announcing it would maintain a pragmatic trade relationship with China.

Canadian Finance Minister Francois-Philippe Champagne, whose country has built closer economic ties with China since the start of the year, stated that Canada engages with China on the same footing as other G7 nations and within “clear guardrails.”

IMF Managing Director Kristalina Georgieva told Reuters she believes China recognizes the need to act, but noted Beijing is calling for coordinated action with other nations like the US, such as Washington reducing its widening fiscal deficits that fuel excessive import demand.

Speaking late Monday, Japanese Finance Minister Satsuki Katayama said she told her G20 counterparts that arbitrary export restrictions on critical minerals harm the global economy.

This issue was also incorporated into the G20 chair’s statement.

“We urge countries to avoid unnecessary export restrictions to ensure global supply chains continue to function normally,” the statement said.

In April 2025, Beijing leveraged its dominance in critical mineral processing by imposing export restrictions on rare earth elements in response to tariffs implemented by US President Donald Trump that also affected non-US companies.

US push on artificial intelligence

At a meeting held Tuesday in North Carolina attended by industry leaders and trade ministers, the US pressed G20 members to adopt a hands-off approach to artificial intelligence regulation and refrain from introducing new rules for the technology.

US objectives align closely with the views of the world’s largest AI companies, almost all of which are American.

These companies seek fewer regulations globally or want rules shaped by themselves for their fast-growing businesses.

Requirements imposed by federal governments could weigh on industry profits if they slow the rollout of new models or force companies to alter product operations to address safety concerns.

US technology adviser Michael Kratsios, who co-chaired the two-day meeting, advocated for countries to adopt the “Carolina Principles.”

Kratsios told G20 officials at the meeting that signatory countries agree to “reserve new regulation only for novel issues” when crafting AI rules.

He added that these nations would invest in “basic research to accelerate discoveries” and enhance commercial opportunities for emerging technologies.

“Policymakers do not need to treat every innovation in isolation, nor should they treat every emerging technology as a first-of-its-kind policy challenge,” Kratsios said.

Big Tech executives to address G20 ministers

SpaceX CEO Elon Musk criticised European Union technology regulations on Tuesday morning, stating that EU policy “stifles progress” for companies.

He also urged non-Chinese leaders to develop new power sources to fuel data centres.

A US Department of Commerce spokesperson said Meta CEO Mark Zuckerberg would address ministers via video conference in place of company president Dina Powell McCormick, who had previously been scheduled to speak.

A Google spokesperson said on Monday that Demis Hassabis, co-founder of Google DeepMind, had also been added to the roster of speakers addressing ministers by video link.

Reuters previously reported that OpenAI CEO Sam Altman and Nvidia CEO Jensen Huang would appear separately before delegates on Wednesday alongside host Commerce Secretary Howard Lutnick.

A White House official said that during the G20 technology meeting, the US would press member nations not to establish new regulatory bodies to oversee artificial intelligence development.