To be clear, "China derails" is the US's narrative of it: this was essentially the US setting up a communiqué designed to contain China, and China predictably refusing to sign it.
It's even comical: for instance the communiqué (which you can read here:
home.treasury.gov/news/press…) endorsed in paragraph 11 the IMF's "surveillance of global imbalances" - essentially asking the IMF, controlled by the US, to play watchdog on surplus countries.
It's basically the US attempting to be judge and jury: "we'll define what counts as an 'imbalance,' have our own institution monitor it, and then prescribe the remedy - which, conveniently, is that you dismantle your economic model in our favor."
Pretty funny that China is then blamed for "derailing the consensus" when refusing to sign this: it's akin to saying that the turkey "derailed Thanksgiving" by declining to climb into the oven.
The communiqué even literally has an entire chapter called "addressing global imbalances" which is essentially all about telling China to change its economic model - referring to "countries with excessive and persistent external surpluses" whose "policies and practices result in harmful spillovers."
China signing this would essentially be them acknowledging officially that their development model was "harmful" and a "distortion" the world needs to be protected from.
You'd have to be insane to sign that: again, akin to our turkey saying he deserves the oven.
The real story here, however, that the FT should have written and which is in fact worrying for China, is that everyone else - the 19 other countries of the G20, including Russia's Finance Minister Anton Siluanov who attended in person - apparently signed the communiqué.
Which, it's got to be said, is pretty cynical in the case of Russia given that the communiqué also includes anti-Iran language on the Strait of Hormuz, and that some of the anti-"non-market economy" language could just as well apply to their own economic model.
That being said, there is no denying that it's inconvenient for China: cynically or not, the 19 biggest economies in the world did sign a paper that said China's surplus is a problem for them, which makes it a problem for China.
Back in June I wrote about China's ancient tribute system (朝贡, "Chaogong", see my article here:
arnaudbertrand.substack.com/…) and how, contrary to what many people believe, it was built on the principle of 厚往薄来 (giving out much more than you take in), making the relationship so valuable that countries fought to get in.
In essence, the logic of Chaogong was that China's centrality had to be worth it for everyone else - that there needs to be a carrot - otherwise it's unsustainable.
And, as I wrote back then, the irony is that when the West pushes China to boost domestic consumption and reduce surpluses, in effect it is them asking China to revive a Chaogong-like system, and asking for a carrot that makes it worth their while.
I'd be ready to bet this is the direction of travel for China: not as a response to US pressure but because their own strategic tradition tells them that power needs to be sustained by generosity.
Ironically, this means that the real story of this communiqué is this: we're at a unique historical moment where the rest of the world is practically begging to become Chinese tributary states.