China Warns G20 of Insufficient Global Economic Growth

By Liz Lee

BEIJING (Reuters) – China warned at a G20 meeting that world economic growth was “insufficient” due to tariff and trade wars exacerbating financial instability and sapping momentum, according to its finance ministry and central bank.

Finance Minister Lan Foan urged all parties to strengthen multilateral cooperation, advocating for dialogue and consultation “on equal footing” to resolve trade disputes.

People’s Bank of China Governor Pan Gongsheng highlighted that economic fragmentation and trade tensions had disrupted supply chains, weakening global growth momentum. He called for major economies to enhance their involvement in international macroeconomic and financial policy coordination.

Participants at the finance ministers and central bank governors meeting noted rising risks to global growth from trade tensions, tighter financing, and long-term structural challenges. They emphasized the need for dialogue and policy coordination without mentioning the United States.

The G20 met amid U.S. President Donald Trump’s announcement of hefty tariffs that triggered market turmoil and led the International Monetary Fund to lower its growth forecasts for many countries. Although Trump later put some tariffs on hold, he increased levies on China to 145% and maintained 10% and 25% duties on various imports.

While the U.S. indicated tariff talks with China, Beijing denied this, demanding the U.S. eliminate the tariffs.

Lan called for better execution of the debt treatment mechanism under the G20’s Common Framework and urged members to focus on Africa’s development and capacity-building.

The finance ministry stated that Lan engaged in bilateral discussions with representatives from countries and organizations including South Africa, the European Commission, Pakistan, Germany, South Korea, Indonesia, Britain, Japan, and the World Bank, focusing on the macroeconomic landscape and G20 fiscal issues.