< h1 > Hostages no more: G7 takes stand against China
< p > The G7 leaders have sent a clear message to Beijing about their stance on divisive issues such as the Indo-Pacific and Taiwan. They have said ‘economic coercion’ is being used to hold them hostage. In recent years, Beijing has been unafraid to slap trade sanctions on countries that have displeased them. The G7 would condemn what they see as a “disturbing rise” of the “weaponisation of economic vulnerabilities”. It seeks to “undermine the foreign and domestic policies and positions of G7 members as well as partners around the world”.
< h2 > Tricky Balancing Act
< p > 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.
< h2 > Multilateral Export Controls
< p > The biggest stick they plan to wield is multilateral export controls, making sure their technologies, particularly those used in military and intelligence, don’t end up in the hands of “malicious actors”. This means working together. The US’ ban on exports of chips and chip technology to China has been joined by Japan and the Netherlands. The G7 is making clear such efforts would not only continue, but ramp up, despite Beijing’s protestations.
< h2 > De-risking
< p > They called for “de-risking”. 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.
< h2 > Not Wanting to Sever the Cord
< p > 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.
< h2 > Related Facts
< ul >
< li > Beijing has been unafraid to slap trade sanctions on countries that have displeased them.
< h2 > Key Takeaway
< p > G7 leaders have made clear to Beijing their stance on divisive issues such as the Indo-Pacific and Taiwan. They are standing their ground in a nuanced way by seeking to placate and pressure Beijing. They are clear they do not want to sever the cord to China, but simultaneously want to end the “weaponisation of economic vulnerabilities”. They called for “de-risking” and launched a “coordination platform” to counter the coercion and work with emerging economies.
< h2 > Conclusion
< p > G7’s stance against China’s economic coercion is pushing relations between the countries closer to a breaking point. Such efforts would not only continue, but ramp up, despite Beijing’s protestations. Beijing is playing a complex game of balancing political and economic interests, and these G7 steps mean that its options are becoming increasingly limited.