G20 finance chiefs vow to act on ‘intensifying’ global trade and geopolitical tensions

Policymakers issue joint communique saying they ‘will continue to address risks and stand ready to take further action’

Worsening trade war between US and China dominates discussions during meeting of ministers and central bankers in Japan

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Financial policymakers from the world’s top 20 economies pose for a group photo in Fukuoka, Japan on Sunday. Photo: EPA

Published: 10:22pm, 9 Jun 2019Updated: 10:13am, 13 Jun 2019

Finance ministers and central bankers from the world’s 20 top economies have pledged to take action against “intensifying” global trade and geopolitical tensions, according to a joint communique released on Sunday.

“The [global economic] recovery is supported by the continuation of accommodative financial conditions, stimulus measures taking effect in some countries, and one-off factors dissipating,” the Group of 20 statement said. “However, growth remains low and risks remain tilted to the downside. Most importantly, trade and geopolitical tensions have intensified.

“We will continue to address these risks, and stand ready to take further action.”

The financial policymakers were meeting in Fukuoka, Japan over the weekend, with the escalating trade war between the US and China dominating discussions.

Washington is preparing to impose tariffs of up to 25 per cent on a further US$300 billion of Chinese goods as the trade war continues to escalate. Photo: Xinhua

US President Donald Trump and Chinese President Xi Jinping are expected to meet at the G20 leaders summit in Osaka, Japan on June 28-29, although that meeting is not yet confirmed. Analysts believe the chances of a breakthrough to reach a trade agreement if that meeting takes place are slim.

The US is making preparations to extend punitive tariffs of up to 25 per cent on the US$300 billion worth of Chinese goods that have so far escaped such duties, and has effectively banned US companies from selling components and software to Chinese telecoms giant Huawei Technologies, sharply escalating the trade war. US Treasury Secretary Steven Mnuchin said in an interview with CNBC on Sunday that Trump was “perfectly happy” to impose the sanctions if the meeting with Xi did not go well.