G7 seeks to reduce risk without severing ties with China

G7 seeks to reduce risk without severing ties with China

May 20, 2023

Tokyo [Japan], May 20: G7 leaders are expected to discuss a new approach to China and a mechanism to counter Beijing's economic coercion.
During the second working day of the G7 summit , taking place in Hiroshima (Japan), the leaders are expected to confirm the importance of tightening ties with emerging countries and is developing, as China is seeking to increase military cooperation globally, according to Kyodo News.
Meanwhile, Bloomberg reported that G7 leaders (UK, Canada, Germany, US, Japan, France and Italy) will also launch a new mechanism to deal with economic coercion. The leaders want to send a signal to Beijing that they are united in combating what they see as hostile action on the economic front.
In a statement, the British government accused China of using its economic power to coerce countries such as Australia and Lithuania in political conflicts.
The new mechanism, called the G7 Coordination Platform on Economic Coercion , will help address the increasing and more dangerous use of economic coercive measures to interfere in other countries' affairs.
This joint mechanism will allow G7 members to coordinate responses to actions such as trade and investment restrictions, boycotts, and cyberattacks. However, this does not mean that it will automatically trigger a response every time there is pressure.
The sources also said that countries disagree on the extent of their response, and although they want to diversify their supply chains , many still have close economic links with China.
Answering a press conference on the sidelines of the conference in Hiroshima on the morning of May 20, US National Security Adviser Jake Sullivan said that G7 leaders will come up with a common set of tools to deal with economic coercion, including steps to building more resilient supply chains, export controls and foreign investment to protect sensitive technology. Each country will decide its own approach, Reuters quoted the US adviser as saying
Mr. Sullivan said the G7 members wanted to reduce the risks associated with China, not dissociate with it. He revealed that the leaders' joint statement will emphasize that each country has an independent relationship and approach, but the G7 is united and united on a common set of standards.
The official said the joint statement will not surprise China because its content is G7 concerns that Beijing is well aware of.
Source: Thanh Nien Newspaper