Bahama Times

Monday, Apr 15, 2024

G7 takes stand against China’s ‘economic coercion’

G7 takes stand against China’s ‘economic coercion’

As the G7 leaders sent a strong message to Russia by inviting Volodymyr Zelensky to Hiroshima, another rival was also on their minds — China.
British Prime Minister Rishi Sunak said China posed “the greatest challenge of our age” in regards to global security and prosperity, and that it was “increasingly authoritarian at home and abroad”.

And in not one but two statements, the leaders of the world’s richest democracies made clear to Beijing their stance on divisive issues such as the Indo-Pacific and Taiwan.

But the most important part of their message centered on what they called “economic coercion”.

It’s a tricky balancing act for the G7. Through trade their economies have become inextricably dependent on China, but competition with Beijing has increased and they disagree on many issues including human rights.

Now, they worry they are being held hostage.

In recent years, Beijing has been unafraid to slap trade sanctions on countries that have displeased them. This includes South Korea, when Seoul installed a US missile defense system, and Australia during a recent period of chilly relations.

The European Union was particularly alarmed when China blocked Lithuanian exports after the Baltic country allowed Taiwan to set up a de facto embassy there.

So it is unsurprising that the G7 would condemn what they see as a “disturbing rise” of the “weaponization of economic vulnerabilities”.

This coercion, they said, seeks to “undermine the foreign and domestic policies and positions of G7 members as well as partners around the world”.

They called for “de-risking”— a policy that von der Leyen, who is attending the summit, has championed. This is a more moderate version of the US’ idea of “decoupling” from China, where they would talk tougher in diplomacy, diversify trade sources, and protect trade and technology.

They have also launched a “coordination platform” to counter the coercion and work with emerging economies. While it’s still vague on how this would work exactly, we’re likely to see countries helping each other out by increasing trade or funding to work around any blockages put up by China.

The G7 also plans to strengthen supply chains for important goods such as minerals and semiconductors, and beef up digital infrastructure to prevent hacking and stealing of technology.

But the biggest stick they plan to wield is multilateral export controls. This means working together to ensure their technologies, particularly those used in military and intelligence, don’t end up in the hands of “malicious actors”.

The US is already doing this with its ban on exports of chips and chip technology to China, which Japan and the Netherlands have joined. The G7 is making clear such efforts would not only continue, but ramp up, despite Beijing’s protestations.

They also said they would continue to crack down on the “inappropriate transfers” of technology shared through research activities. The US and many other countries have been concerned about industrial espionage and have jailed people accused of stealing tech secrets for China.

At the same time, the G7 leaders were clear they did not want to sever the cord.

Much of their language on economic coercion did not name China, in an apparent diplomatic attempt to not directly point a finger at Beijing.

When they did talk about China, they stood their ground in a nuanced way.

They sought to placate Beijing, saying their policies were “not designed to harm China nor do we seek to thwart China’s economic progress and development”. They were “not decoupling or turning inwards”.

But they also put pressure on the Chinese to cooperate, saying that a “growing China that plays by international rules would be of global interest”.

They also called for “candid” engagement where they could still express their concerns directly to China, signaling their willingness to keep communication lines open in a tense atmosphere.

We won’t know how, privately, Chinese leaders and diplomats will take the G7’s message. But state media in the past has hit back at the West for trying to have it both ways, by criticizing China while also enjoying the fruits of their economic partnership.

For now Beijing has chosen to fall back on its usual angry rhetoric for its public response.

China had clearly anticipated the G7’s statements and in the days leading up to the summit, its state media and embassies put out pieces accusing the US of its own economic coercion and hypocrisy.

On Saturday evening, they accused the G7 of “smearing and attacking” China and lodged a complaint with summit organizer Japan.

They also urged the other G7 countries not to become the US’ “accomplice in economic coercion”, and called on them to “stop ganging up to form exclusive blocs” and “containing and bludgeoning other countries”.

It is worth noting that China has also sought to create its own alliances with other countries, and late last week just as the G7 summit kicked off, it hosted a parallel meeting with Central Asian countries.

It’s still not clear if the G7’s plan will work. But it is likely to be welcomed by those who have called for a clear strategy to handle China’s encroachments.

Indo-Pacific and China expert Andrew Small praised the statement as having “the feel of a real consensus”, noting that it expressed the “center-ground” view of the G7.

“There are still major debates playing out around what ‘de-risking’ actually means, how far some of the sensitive technology export restrictions should go, and what sort of collective measures need to be taken against economic coercion,” said Dr. Small, a senior transaAtlantic fellow with the German Marshall Fund think tank.

“But there is now a clear and explicit framing around how the economic relationships with China among the advanced industrial economies need to be rebalanced.”
Newsletter

Related Articles

Bahama Times
0:00
0:00
Close
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
BBC Personalities Rebuke Accusations Amidst Scandal Involving Teen Exploitation
A Swift Disappointment: Why Is Taylor Swift Bypassing Canada on Her Global Tour?
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
Unilever Plummets in a $2.5 Billion Free Fall, to begin with: A Reckoning for Misuse of Corporate Power Against National Interest
Beyond the Blame Game: The Need for Nuanced Perspectives on America's Complex Reality
Twitter Targets Meta: A Tangle of Trade Secrets and Copycat Culture
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
×