The Group of Seven (G7) wealthy democracies is considering taking action against China for flooding global markets with its manufactured exports, G7 finance ministers and central bank governors said on Saturday.
The ministers said a "level playing field" needed to be assured in line with the principles of the World Trade Organization (WTO) and that it would "monitor the potential negative impacts of overcapacity."
The G7 consists of the United States, the United Kingdom, France, Germany, Italy, Japan and Canada. The European Union is a "non-enumerated" member, meaning it takes part in the meetings but does not assume the rotating G7 presidency, which is currently held by Italy.
Tensions over Chinese exports on foreign markets have flared, with Washington and Europe accusing Beijing of supporting sectors like green technologies with massive state subsidies.
They allege China is knowingly creating this "overcapacity" and then dumping the goods in their markets at artificially low prices, to the detriment of their home-grown businesses.
"While reaffirming our interest in a balanced and reciprocal collaboration, we express concerns about China’s comprehensive use of non-market policies and practices that undermines our workers, industries, and economic resilience," said a concluding statement by the ministers in Stresa, on the shores of Lake Maggiore in northern Italy.
Last week, the United States said it was raising tariffs on Chinese electric vehicles to 100%, effectively banning them from the market.
The EU is also currently investigating the extent to which China is distorting the market for electric cars. A decision as to whether it will impose punitive tariffs is still pending.
The Chinese Chamber of Commerce in Brussels recently warned of possible countermeasures by Beijing that could affect Western car manufacturers.