EDITORIAL | G20 Displays No Resolve to Resist US Protectionism or China

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The latest G20 summit has concluded in Rio de Janeiro, Brazil. Among its leaders in attendance, the main concern was how to respond to the incoming Donald Trump administration.

Trump has signaled his administration would adopt a strongly protectionist stance and favor "America First." This is a clear step back from the 2023 summit declaration. Likewise, it is a retreat from the joint statement of the G20 finance ministers and central bank governors meeting in October, just before the United States presidential election. That statement called for "resistance to protectionism" among other things.

We cannot shake the feeling that the G20 leaders sought to avoid provoking Trump's wrath.

*Xi Jinping in Rio de Janeiro, Brazil, in November. (©AP)*

Xi's Bid for Dominance

Trump's proposed tariff hikes would apply not only to imports from China but to imports from all countries. That includes friends and allies like Japan and Europe. If the G20 leaders are so hesitant to oppose Trump even before he takes office, it is hard to imagine them pressing him in the future. That leaves the relevance of the G20 likely to further decline and Trump unhindered.

China's actions also require particular attention. While the G20 avoided direct criticism of protectionism, China's presence stood out. Beijing has launched its own anti-protectionist offensive. In his speech at the G20 summit, Chinese President Xi Jinping called for "opposition to unilateralism and protectionism." He also made similar appeals at the Asia-Pacific Economic Cooperation (APEC) summit in Peru and in bilateral talks before the G20 summit.

Many G20 and APEC member states are also members of the Comprehensive and Progressive Trans-Pacific Partnership, known as the CPTPP, which China is seeking to join. In other words, China may well have been seeking to influence them at these leading international forums.

Xi, in calling for a united front to oppose protectionism, was clearly aiming to alienate other countries from the United States. Instead, he aims to bring those countries into China's own orbit.

Chinese President Xi Jinping at the Belt and Road Forum in Beijing. October 18, 2023. (©Sputnik/Andrei Gordeev/Pool via REUTERS)

China the Epitome of Unfree Trade

However, Xi has no right to pretend that his country is the flag bearer of free trade. China has distorted the free trade system through preferential treatment for state-owned enterprises, non-transparent industrial subsidies, and economic coercion against other countries. All of these are for China's own political and economic gain. Turning a blind eye to these abuses and dancing to Xi's tune is fundamentally wrong.

Ideally, Japan should play a leading role in the international community. That is the best way to ensure that US tariff measures do not stall global trade. When Shinzo Abe was prime minister, he helped stabilize the TPP after the first Trump administration had withdrawn from participation. Abe also induced US involvement in the "Free and Open Indo-Pacific" initiative. Such a strategic approach is again required.

Unfortunately, we did not see even an inkling of such proactiveness during Prime Minister Shigeru Ishiba's trip to South America. What's the point, if we are only left to talk about how he acted during meetings or his being late for group photos?