Most trade ministers from the Group of 20 (G20) economies failed to reach consensus on addressing excess industrial capacity and forced labour during a two-day meeting held this week in Milwaukee, Wisconsin, according to China’s Ministry of Commerce. The impasse contrasts with a statement from the United States, which described opposition as limited to a “handful” of countries.
The G20 Trade Ministerial Conference, concluding on Thursday, saw sharp disagreements over contentious issues related to managing overcapacity and labour standards, with no joint outcome document produced on these matters. A Ministry of Commerce spokesperson said the divergent views among member states prevented consensus, underscoring the complexity of the issues.
In its own statement on Friday, the U.S. Trade Representative’s office reported that only a small number of trade ministers opposed establishing a “pathway towards cooperative action” on tackling excess capacity and non-market policies, including forced labour. However, the U.S. did not identify the countries opposing the initiative.
These unresolved issues are set to be prominent in the forthcoming China-European Union (EU) trade talks scheduled for later this week in Beijing. Beyond excess capacity and forced labour, delegates at the Milwaukee meeting also debated proposals to revise the principles underpinning the most-favoured-nation (MFN) treatment in international trade. On the MFN issue, China’s ministry said the majority of states believe any weakening of this principle could undermine the foundations of the global multilateral trading system. The U.S., however, noted a growing willingness among members to engage in discussions about possible improvements to the MFN framework.
Meanwhile, the conference produced a joint statement condemning the use of food as a political weapon through coercive means, reflecting a rare area of agreement among participants.
The United States and the EU have long pointed to what they consider excess supply in certain Chinese export sectors, applying tariffs on products ranging from solar panels to electric vehicles. China has repeatedly rejected these claims, maintaining that factors such as industrial subsidies and domestic demand constraints do not necessarily cause excess capacity. In a recent statement, Beijing warned that protectionist measures could disrupt global trade, weaken supply chains, and hinder sustainable economic growth worldwide.
China’s top international trade representative, Li Chenggang, reiterated Beijing’s opposition to framing issues of overcapacity and forced labour as grounds for unilateral actions or protectionism. He emphasized China’s openness to dialogue and cooperation on industrial policy to foster mutual trust and support the sustainable development of global industries. During the Wisconsin meeting, Li held meetings or brief discussions with representatives from 11 G20 members, according to Chinese officials.
The differing positions on these trade policy challenges highlight ongoing tensions within the G20, reflecting broader debates over globalization, market regulation, and the balance between national interests and multilateral cooperation.