The Group of Seven (G7) nations, comprising the US, UK, Canada, Japan, Germany, France and Italy, is planning to issue a joint statement expressing their ongoing concern over China’s use of economic coercion. As the G7 foreign ministers prepare to meet in London on 3-5 May 2021, officials say that while member states are united in their desire to coordinate responses to China’s economic practices, agreeing on tangible measures has proved complicated, with the focus of debate centring around how tough the messaging should be to China.
Addressing the recent Chinese conduct, which has been viewed by some nations as a form of economic blackmail, will be high on the agenda at next month’s G7 summit, which will be held under UK presidency. The G7 leaders will use the summit to coordinate on a comprehensive approach to China’s economic practices, agreeing on a range of policies that can be deployed to curtail its aggressive behaviour.
With China’s rapid economic rise, spurred on by its adoption of trade liberalisation policies, some Western governments have expressed concerns that China would use its growing economic clout to force countries that disagree with its policies into compliance. Analysts say that China’s recent behaviour, particularly in relation to Taiwan, Hong Kong and the Xinjiang Uighur Autonomous Region, has raised concerns among other international stakeholders and observers about China’s intentions and motives.
In light of these concerns, various methods of countering China’s economic coercion have been proposed. One proposal is to work together to strengthen the global trading system, including reform of the World Trade Organization (WTO), which would facilitate fair competition and reduce the scope for Chinese state-owned enterprises to rig the system in their favour. Another way proposed to counter China’s economic muscle is through an alliance of democracies, which would work together to promote fair trade practices worldwide.
The G7 nations also aim to enforce rules against foreign companies that transfer sensitive technologies to China, particularly those with military applications, such as artificial intelligence and 5G technology. This would help to stem the tide of Chinese companies stealing intellectual property from its foreign rivals, as well as limiting China’s advancement in military and security applications. Recently, several Western companies, including telecoms giant Huawei, have been accused of providing technical support to Chinese military and security forces, raising serious questions about the ethical nature of cooperation between American and European companies with Chinese firms.
China’s activities are expected to remain high on the agenda when the G7 leaders meet next month in Cornwall, UK. While the G7 countries may differ on the specifics of how to counter China’s economic coercion, officials say that there is near-unanimous agreement on the need for a coordinated response. The G7 will also seek to promote a wider shared agenda on issues such as climate change, global vaccination, human rights, democracy and security, to counteract those of China.
In conclusion, China’s rise in power has raised concerns about its intentions and behaviour, with international observers alarmed by its increasing use of economic coercion, support for autocratic regimes and human rights abuses. As the G7 meeting looms, the leaders of seven major democracies are expected to call for joint action against China’s economic aggression, to help level the playing field and ensure a fair and transparent global trade system. It remains to be seen how this will be done and what measures will be taken against China, but this is an issue that will remain a priority for the G7 and the international community as a whole.
