G-20 talks finance tactics for trade war, digital disruption

China's Central Bank Governor Yi Gang shakes hands with U.S. Treasury Secretary Steve Mnuchin, left, during the G20 Finance Ministers and Central Bank Governors Meeting Saturday, June 8, 2019, In Fukuoka, Japan. (Kim Kyung-hoon/Pool Photo via AP)
U.S. Treasury Secretary Steven Mnuchin leaves after speaking to media at the venue of G20 Finance Minister and Central Bank Governors Meeting Saturday, June 8, 2019, in Fukuoka, western Japan. (AP Photo/Eugene Hoshiko)
Organization for Economic Cooperation and Development (OECD) Secretary-General Angel Gurria, left, and Japan's Finance Minister Taro Aso pose with the revised OECD Code of Liberalization of Capital Movements during the G20 finance ministers and central bank governors meeting in Fukuoka, southwestern Japan, Saturday, June 8, 2019. (Frank Robichon/Pool Photo via AP)
Bank of Japan Governor Haruhiko Kuroda, center bottom, speak with other participants prior to G20 Finance Ministers' and Central Bank Governors' Meeting Saturday, June 8, 2019, in Fukuoka, western Japan. (AP Photo/Eugene Hoshiko, Pool)
Bank of Japan Governor Haruhiko Kuroda, second left, speaks to journalists ahead of the G20 finance ministers and central bank governors meeting in Fukuoka, southwestern Japan, Saturday, June 8, 2019. (Nozomu Endo/Kyodo News via AP)
Japan's Deputy Prime Minister and Finance Minister Taro Aso reacts at the seminar on financial innovation "Our Future in the Digital Age" on the sidelines of the G-20 finance ministers and central bank governors meeting Saturday, June 8, 2019, in Fukuoka, Japan. The G20 finance ministers and central bank governors meeting is taking place in Fukuoka June 8-9. (Kiyoshi Ota/Pool Photo via AP)
U.S. Treasury Secretary Steven Mnuchin, center, and French Economy and Finance Minister Bruno Le Maire, left, greet each other prior to their bilateral meeting at the venue of G20 Finance Minister and Central Bank Governors Meeting in Fukuoka, southern Japan Saturday, June 8, 2019. (AP Photo/Eugene Hoshiko)
Japanese Finance Minister Taro Aso delivers opening remarks during the G20 Ministerial Symposium on International Taxation in the G20 Finance Ministers and Central Bank Governors meeting in Fukuoka, southern Japan Saturday, June 8, 2019. Finance chiefs of the Group of 20 major economies meeting in the Japanese city of Fukuoka are debating how to revise tax systems to ensure big companies pay their fair share and support economies as global growth slows. (Toshifumi Kitamura/Pool Photo via AP)
Japan's Deputy Prime Minister and Finance Minister Taro Aso reacts at the seminar on financial innovation "Our Future in the Digital Age" on the sidelines of the G-20 finance ministers and central bank governors meeting Saturday, June 8, 2019, in Fukuoka, Japan. The G20 finance ministers and central bank governors meeting is taking place in Fukuoka June 8-9. (Kiyoshi Ota/Pool Photo via AP)
OECD Secretary-General Angel Gurria, left, and Japan's Finance Minister Taro Aso attend a press conference of the revised OECD Code of Liberalization of Capital Movements during the G20 finance ministers and central bank governors meeting Saturday, June 8, 2019, in Fukuoka, Japan. The G20 finance ministers and central bank governors meeting is taking place in Fukuoka June 8-9. (Franck Robichon/Pool Photo via AP)
U.S. Treasury Secretary Steven Mnuchin, right, delivers a speech during the G20 Ministerial Symposium on International Taxation in the G20 Finance Ministers and Central Bank Governors meeting in Fukuoka, southern Japan Saturday, June 8, 2019. Finance chiefs of the Group of 20 major economies meeting in the Japanese city of Fukuoka are debating how to revise tax systems to ensure big companies pay their fair share and support economies as global growth slows. (Toshifumi Kitamura/Pool Photo via AP)
Bank of Japan Governor Haruhiko Kuroda, second left, speaks to journalists ahead of the G20 finance ministers and central bank governors meeting in Fukuoka, southwestern Japan, Saturday, June 8, 2019. (Nozomu Endo/Kyodo News via AP)
U.S. Treasury Secretary Steven Mnuchin, second left, and French Economy and Finance Minister Bruno Le Maire, third right, meet at the venue of G20 Finance Minister and Central Bank Governors Meeting in Fukuoka, southern Japan Saturday, June 8, 2019. (AP Photo/Eugene Hoshiko)
Indonesian Finance Minister Sri Mulyani Indrawati, right, delivers a speech while French Economy and Finance Minister Bruno Le Maire looks on during the G20 Ministerial Symposium on International Taxation in the G20 Finance Ministers and Central Bank Governors meeting in Fukuoka, southern Japan Saturday, June 8, 2019. Finance chiefs of the Group of 20 major economies meeting in the Japanese city of Fukuoka are debating how to revise tax systems to ensure big companies pay their fair share and support economies as global growth slows. (Toshifumi Kitamura/Pool Photo via AP)
OECD Secretary-General Angel Gurria, left, and Japan's Finance Minister Taro Aso attend a press conference of the revised OECD Code of Liberalization of Capital Movements during the G20 finance ministers and central bank governors meeting Saturday, June 8, 2019, in Fukuoka, Japan. The G20 finance ministers and central bank governors meeting is taking place in Fukuoka June 8-9. (Franck Robichon/Pool Photo via AP)
U.S. Treasury Secretary Steven Mnuchin prepares to speak to media at the venue of G20 Finance Minister and Central Bank Governors Meeting Saturday, June 8, 2019, in Fukuoka, western Japan. (AP Photo/Eugene Hoshiko)
Steven Mnuchin, U.S. Treasury Secretary speaks to media at the venue of G20 Finance Minister and Central Bank Governors Meeting Saturday, June 8, 2019, in Fukuoka, western Japan. (AP Photo/Eugene Hoshiko)
Chinese Finance Minister Liu Kun, center, delivers a speech while Japanese Finance Minister Taro Aso, left, and French Economy and Finance Minister Bruno Le Maire listen during the G20 Ministerial Symposium on International Taxation in the G20 Finance Ministers and Central Bank Governors meeting in Fukuoka, southern Japan Saturday, June 8, 2019. Finance chiefs of the Group of 20 major economies meeting in the Japanese city of Fukuoka are debating how to revise tax systems to ensure big companies pay their fair share and support economies as global growth slows. (Toshifumi Kitamura/Pool Photo via AP)
Japan's Deputy Prime Minister and Finance Minister Taro Aso reacts at the seminar on financial innovation "Our Future in the Digital Age" on the sidelines of the G-20 finance ministers and central bank governors meeting Saturday, June 8, 2019, in Fukuoka, Japan. The G20 finance ministers and central bank governors meeting is taking place in Fukuoka June 8-9. (Kiyoshi Ota/Pool Photo via AP)
U.S. Treasury Secretary Steven Mnuchin, center right, speaks to media at the venue of G20 Finance Minister and Central Bank Governors Meeting Saturday, June 8, 2019, in Fukuoka, western Japan. (AP Photo/Eugene Hoshiko)
U.S. Treasury Secretary Steven Mnuchin, right, and French Economy and Finance Minister Bruno Le Maire greet each other prior to their bilateral meeting at the venue of G20 Finance Minister and Central Bank Governors Meeting in Fukuoka, southern Japan Saturday, June 8, 2019. (AP Photo/Eugene Hoshiko)
Japanese Finance Minister Taro Aso, right, listens to Organization for Economic Cooperation and Development (OECD) Secretary-General Angel Gurria during the G20 Ministerial Symposium on International Taxation in the G20 Finance Ministers and Central Bank Governors meeting in Fukuoka, southern Japan Saturday, June 8, 2019. Finance chiefs of the Group of 20 major economies meeting in the Japanese city of Fukuoka are debating how to revise tax systems to ensure big companies pay their fair share and support economies as global growth slows. (Toshifumi Kitamura/Pool Photo via AP)
French Economy and Finance Minister Bruno Le Maire delivers a speech during the G20 Ministerial Symposium on International Taxation in the G20 Finance Ministers and Central Bank Governors meeting in Fukuoka, southern Japan Saturday, June 8, 2019. Finance chiefs of the Group of 20 major economies meeting in the Japanese city of Fukuoka are debating how to revise tax systems to ensure big companies pay their fair share and support economies as global growth slows. (Toshifumi Kitamura/Pool Photo via AP)

FUKUOKA, Japan — Financial leaders of the Group of 20 gathered Saturday to brainstorm ways to adapt global finance to an age of trade turmoil and digital disruptions.

The central bank governors and other financial regulators meeting in this southern Japanese port city also flagged risks from upsets to the global economy as Beijing and Washington clash over trade and technology.

Asked if other financial leaders attending the meetings in Fukuoka were raising concerns over the impact on global markets and trade from President Donald Trump's crusade against huge, chronic U.S. trade deficits, especially with China, U.S. Treasury Secretary Steven Mnuchin said no.

Trump and members of his administration contend that the ripple effects of the billions of dollars in tariffs imposed by Washington on Chinese exports over the past year are creating new business opportunities for other businesses in the U.S. and other countries.

But Mnuchin acknowledged that growth has been slowing in Europe, China and other regions.

"I'm hearing concerns if we continue on this path there could be issues. There will be winners and losers," he said.

The G-20 officials were expected to express their support for adjusting monetary policy, for example by making borrowing cheaper through interest rate cuts, in a communique to be issued as meetings wrap up on Sunday.

Their official agenda on Saturday was focused on longer-term, more technical issues such as improving standards for corporate governance, policing cyber-currencies and reforming tax systems to ensure they are fair for both traditional and new, online-based industries.

Ensuring that governments capture a fair share of profits from the massive growth of businesses like Google and Amazon has grown in importance over the many years the G-20 finance chiefs have been debating the reforms aimed at preventing tax evasion and modernizing policies to match a financial landscape transformed by technology.

One aim is to prevent a "race to the bottom" by countries trying to lure companies by offering unsustainably and unfairly low tax rates as an incentive.

Mnuchin said he disagreed with details of some of the proposals but not with the need for action.

"Everyone, we are now facing a turning point," Japanese Finance Minister Taro Aso told the group. "This could be the biggest reform of the long established international framework in over 100 years."

Some European members of the G-20, especially, want to see minimum corporate tax rates for big multinationals. France and Britain have already enacted stop-gap tax systems for digital businesses, but they are not adequate, said French Finance Minister Bruno Le Maire.

"For the time being there is no fair taxation of this new economic model," Le Maire said, adding that the hope is to have an agreement by the year's end.

The issue is not confined to the wealthiest nations. Indonesia, a developing country of 260 million with more than 100 million internet users, is also struggling to keep up.

"The growth has been exponential but we cannot capture this growth in our GDP as well as in our tax revenue," said Indonesian Finance Minister Mulyani Indrawati.

Mobile banking, big data, artificial intelligence and cloud computing are among many technologies that are expanding access to financial services for many people who in the past might not have even used banks.

But such innovations raise questions about protecting privacy and cybersecurity, Aso said.

"We need to stay vigilant against risks or challenges," Aso said.

Japan, the world's third-largest economy, is hosting the G-20 for the first time since it was founded in 1999. The venue for the annual financial meeting, Fukuoka, is a thriving regional hub and base for start-ups.

The G-20 groups include Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union.

You may also interested in

US tycoon's China scholarship project opens doors...

Sep 10, 2016

A new scholarship program intended to rival the prestigious Rhodes Scholarships and build...

China says some factories have violated anti-smog...

Jan 3, 2017

China's environmental ministry says an unspecified number of companies have violated measures meant...

Asian shares mixed as investors consider latest...

Jan 5, 2017

Asian stock indexes mixed as investors assess latest Fed meeting minutes; Japan shares slip as yen...

China auto market has bumper year but 2017...

Jan 12, 2017

Industry figures show China's auto market had a bumper year in 2016 as sales grew by 15 percent,...

China exports shrink as Trump trade tensions loom

Jan 13, 2017

China's exports fell back into contraction again last month, signaling renewed weakness for the...

Subscribe To Our Newsletter