Trade ministers from the United States, the European Union, and 13 other economies signed a joint statement Wednesday targeting structural overcapacity in key industries, a move widely viewed as aimed at China's subsidized manufacturing surge.

The statement, released by the Office of the United States Trade Representative following G20 trade ministers' talks in Milwaukee, commits signatories to examine and take effective actions on excess capacity in automobiles and electric vehicles, batteries, chemicals, foundational semiconductors, and solar panels. Signatories include Argentina, Australia, Canada, France, Germany, India, Italy, Japan, South Korea, Mexico, Poland, Turkey, and the United Kingdom.

The document warns that such overcapacity, driven by non-market policies, distorts global prices, deters investment, undermines fair competition, and threatens domestic industries and jobs. Participants agreed to establish sector-specific working groups and hold technical meetings before December to develop responses.

China, which did not sign the statement along with Brazil, Russia, and others, has long faced criticism from Western nations for using state subsidies and industrial policies to flood markets with low-cost goods. This has contributed to factory closures, job losses, and widening trade imbalances in the United States and Europe.

The EU's goods trade deficit with China has grown sharply, exceeding $1 billion daily in recent periods. European leaders have highlighted risks to strategic sectors and called for stronger tools to counter market distortions. Germany and France recently proposed new mechanisms for rapid responses to systemic dumping and subsidies.

The coalition reflects growing transatlantic alignment on trade enforcement. The United States has pursued tariffs and investigations into overcapacity, while Europe advances its own defenses. Signatories emphasized cooperation to protect workers and economies from unfair practices without naming any single country.

Experts note potential for further measures, including aligned tariffs and procurement rules, as talks continue ahead of the December G20 summit. The effort underscores shared concerns over how excess capacity erodes industrial bases in allied nations.