Many finance chiefs from the Group of Seven wealthy democracies on Friday expressed concern that China’s underpriced excess production has had a negative impact on the global economy, Japan’s top currency diplomat said.
Masato Kanda, Japan’s vice finance minister for international affairs, also touched on currency issues, telling reporters in the northern Italian town of Stresa, “It’s all about taking appropriate action if there are excessive fluctuations.”
The G7 meeting, which began Thursday night, comes at a time of considerable depreciation of the yen against the U.S. dollar.
Photo taken from the Italian government’s website shows the Group of Seven finance ministers and central bank governors meeting in Stresa, Italy on May 24, 2024. (Kyodo)
Kanda made the remarks after G7 finance ministers and central bank governors finished the first part of their discussions. China’s excess industrial capacity, supported by massive government subsidies, is one of the major topics at their meeting, which will wrap up on Saturday.
The U.S. administration of President Joe Biden, who is aiming for his second term, is especially keen on the issue.
With the presidential election less than six months away, Biden earlier this month announced plans to quadruple punitive duties on Chinese electric vehicles to 100 percent and sharply raise tariffs on Chinese goods in other sectors of strategic importance, such as semiconductors, in a bid to help American workers compete.
The administration has accused China of flooding global markets with exports that are underpriced with “unfair” industrial policies.
