G7 summit statement to target China's use of 'economic coercion'

China’s ‘policy’ of “economic coercion” in its dealings abroad has been a matter of huge concern, and leaders of the Group of Seven (G7) countries are all set to discuss the issue. They are expected to release a larger joint statement next week, according to a US official familiar with the discussions, reported Reuters. The statement will be released by leaders during the 19-21 May summit in Hiroshima, Japan. It is expected that the statement will be paired with a broader written proposal on how the seven advanced economies will work together to counter “economic coercion” from any country. According to officials, the G7 statement will include “a section specific to China”. It will also have a list of concerns that include “economic coercion and other behavior that we have seen specifically from the (People’s Republic of China).” A separate “economic security statement will speak more to tools” used to counter coercive efforts from any countries responsible, including planning and coordination, the person said. In each case, the statements are to expected go further than prior statements by the G7, reported Reuters. China has been the main focus of US President Joe Biden’s foreign policy. Canada, France, Germany, Italy and the United Kingdom are all part of the G7, and they are all closely tied economically to China. Beijing is the world’s biggest exporter and a key market for many of the G7 countries’ companies. Last month, China called a statement by the G7 foreign ministers that touched on similar topics “full of arrogance, prejudice against China,” and lodged complaints with this year’s G7 host, Japan. Under former US President Donald Trump, G7 statements often offered only a cursory mention of issues involving China. The Biden administration has pushed for more direct statements. The joint statement issued by all the G7 leaders every year is intended to signal that the powerful countries are aligned on a range of political and economic issues. “We’re not for decoupling the US and Chinese economy, we are for de-risking, we are for diversifying,” said the US official, according to Reuters. Negotiations over the precise language of the leaders’ joint declarations are still subject to diplomacy and adjustment before they are released during the summit. Big test The G7 meeting will be a test of how much the member countries can agree on a common approach to Beijing. The China terms have been a major subject of the talks currently underway by G7 finance leaders in Niigata, Japan, where they have focused on reducing “over-reliance” of their countries’ supply chains on Chinese manufacturing, including by partnering with low- and middle-income countries. Notably, some members of the G7 are skeptical about signing on to controls on outbound investment in China. On Thursday, US Treasury Secretary Janet Yellen said that China had clearly used economic coercion with Australia and Lithuania. Reuters reported that the US officials expect the Joe Biden to attend the two-day summit as planned, followed by trips to Papua New Guinea and Australia also aimed at shoring up Washington’s approach to the China-dominated Asia-Pacific region. With inputs from agencies Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.