G7 prepares unified response to Chinese ‘economic coercion’

On Saturday, G7 leaders plan to announce measures to respond to Chinese “economic coercion”, as the group of advanced economies seeks to adopt a common approach on Beijing.

British officials said a “platform” would be unveiled at the G7 summit in Hiroshima that would provide a forum for identifying economic vulnerabilities and coordinating protection measures.

British Prime Minister Rishi Sunak opens a summit session on economic security by noting China’s use of trade measures to coerce countries including Australia and Lithuania over political differences.

“The platform will address the increasing and malicious use of coercive economic measures to interfere in the sovereign affairs of other countries,” Sunak said in remarks published before the meeting.

We must be clear about the growing challenge we face. He said China is engaged in coordinated and strategic economic competition.

A US official said the G7 countries — the United States, the United Kingdom, Japan, Canada, Germany, France and Italy — would define “a common set of tools that we will use to address common concerns, both when it comes to China and other countries.”

Another official involved in the G7 talks said the tools would be used “in very specific areas” such as national security and issues related to the World Trade Organization.

In recent months, China has slapped sanctions on US arms firms Lockheed Martin and Raytheon, opened an investigation into US chipmaker Micron, raided US due diligence firm Mintz, and detained a local executive from Japan’s Astellas Pharma group.

President Xi Jinping’s administration is considering limiting Western access to materials and technologies essential to the global auto industry, according to a review by China’s Ministry of Commerce.

On Saturday, the US official said, the G7 will issue a summit statement highlighting “a common approach on China.”

The statement is being released a day earlier than planned because the leaders are expected to focus on Ukraine on Sunday. Ukrainian President Volodymyr Zelensky will travel to Asia for the first time since Russia invaded his country to join the summit in person.

The coordination on China comes after two years of efforts by the US administration of Joe Biden, with the help of Japan, to promote unity among G7 members on the challenges posed by Beijing.

European officials said the G7 would take a “clear view” on China, maintaining that coordinated action is stronger than unilateral actions by individual countries.

One official added, “We want to avoid misunderstandings (with Chinese leaders), but confront them when necessary.”

But on Friday, China attacked G7 language on “economic coercion”.

The United States often accuses other countries of taking advantage of its superpower status. . . and economic coercion to enforce compliance and engage in coercive diplomacy,” said the Chinese Foreign Ministry. “In fact, it is the United States itself that instigates coercive diplomacy.”

A Western diplomat said there was a lot of focus in the G7 on winning over the “global south”.

“It is clear that China has significant influence over these countries around the world,” the diplomat said. “I think we’re all trying to figure out how to show those middle ground countries that we care about them at all times, not just when we want them to vote a certain way.”

Additional reporting by Joe Leahy in Beijing and Alice Hancock in Brussels

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