China warns G20 global economic growth ‘insufficient’, trade tensions weaken momentum

China warned a G20 meeting that world economic growth was “insufficient” as tariff and trade wars exacerbated economic and financial instability and sapped growth momentum, its finance ministry and central bank said.

Speaking at the group's meeting in Washington, finance minister Lan Foan called on all parties to strengthen multilateral cooperation, saying China supported dialogue and consultation “on equal footing” to settle trade and tariff disputes.

People's Bank of China (PBOC) governor Pan Gongsheng said economic fragmentation and trade tensions had disrupted supply chains, weakening the momentum of global economic growth, the central bank said in a separate readout on Friday.

Pan also told the meeting, which took place on Wednesday and Thursday, that the world's major economies should strengthen their participation in international macroeconomic and financial policy coordination.

Other participants at the finance ministers and central bank governors meeting also flagged the significant increase in risks to global growth from trade tensions, tighter financing conditions and long-term structural challenges, according to the PBOC statement.

They also called for strengthening dialogue and policy coordination, the statement said without referring to the US.

The G20 major economies were meeting in the wake of US President Donald Trump's announcement of hefty tariffs on imports that have triggered turmoil in financial markets and prompted the International Monetary Fund to cut its growth forecasts for most countries around the world.

While Trump later put some tariffs on hold, he raised China levies to 145%, and maintained a universal import tariff of 10% and 25% duties on cars, steel and aluminium.

The US indicated talks were taking place with China on tariffs, but Beijing on Thursday denied that, demanding the US drop the levies.

Lan also urged better implementation of the debt treatment mechanism under the G20's Common Framework, and said all parties should pool more resources for Africa's development and strengthen the continent's capacity-building.

The finance ministry said Lan held bilateral meetings and exchanges with representatives from countries and organisations including SA, the European Commission, Pakistan, Germany, South Korea, Indonesia, Britain, Japan and the World Bank.

The meetings were mainly to discuss the macroeconomic situation, key issues of the G20 fiscal channels and bilateral cooperation, the readout said.

Reuters