The world’s wealthiest democracies just spent a weekend in the Canadian Rockies talking about one country without actually naming it. G-7 finance ministers wrapped up meetings in Banff, Canada, with a communiqué pledging to address “unsustainable global imbalances” and “non-market policies” in global trade. The target of that language is about as subtle as a neon sign: China.
The timing matters. These talks followed a high-profile summit between former US President Donald Trump and Chinese leaders on trade ties between the world’s two largest economies.
What the communiqué actually says
The final statement from the Banff meetings hit several familiar notes, but with sharper edges than usual. The phrase “unsustainable global imbalances” is diplomatic code for a specific complaint: that certain major economies, China chief among them, run persistent trade surpluses fueled by state subsidies, currency management, and industrial policies that don’t play by free-market rules.
What the communiqué conspicuously avoided was any direct reference to US tariffs. This despite the fact that tariffs imposed under the Trump administration are widely expected to drag on global GDP.
