Trade tensions overshadow global economic summit

European Union leaders called today for China to take action on its bloated steel industry and defended an order to Ireland to collect taxes from Apple, highlighting the trade tensions looming over a global economic summit.

The Group of 20 meeting of leaders of the United States, China, Germany and other major economies "must urgently find a solution" to excess steel production, said Jean-Claude Juncker, president of the European Commission. He called on Beijing to accept a monitoring mechanism for overproduction that Beijing's trading partners blame for low prices and job losses.

Juncker also rejected U.S. criticism of the order for Ireland to collect USD 14.5 billion in back taxes from Apple. An EU panel ruled the company's low taxes were improper government aid.

"Free trade must be fair trade," Juncker said at a news conference with Donald Tusk, president of the European Council.

The toughly worded comments reflected the political pressures on governments at a time of weak global economic growth that is fueling demands to protect local industries.

Another prominent issue at the summit is G-20 member Britain's June vote to leave the 28-nation European Union, a move seen by some analysts as the first in a wave of moves by other nations to retreat from free trade.

China, the G-20 host, has made trade a headline issue for the meeting in Hangzhou, a scenic lakeside city southwest of Shanghai. Chinese officials have said they will propose a plan to boost commerce through closer cooperation on regulation, finance, tax and other issues.

China hopes its status as G-20 host will bring it more influence in management of the global economy.

Chinese leaders say they want the G-20, launched to coordinate the response to the 2008 financial crisis, to take on a longer-term role overseeing global economic management.

Germany, South Korea and other governments say they also want to use the meeting to discuss climate, energy and possible reforms to the global tax system to reduce tax evasion.

The two-day meeting began Sunday on a diplomatic high note following a joint announcement by President Barack Obama and his Chinese counterpart, Xi Jinping, that their governments had submitted documents committing them to carrying out the Paris climate agreement.

But U.S. and other officials say they plan to bring up Chinese industrial overcapacity and other potentially thorny issues. Washington has imposed import duties of up to 500 percent on Chinese steel to offset what regulators say are improper subsidies.