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Trang chủ » Approach to ‘de-risk’ from China agreed upon by G-7 leaders.

Approach to ‘de-risk’ from China agreed upon by G-7 leaders.

G-7 leaders agree on approach to 'de-risk' from China

G-7 leaders agree on approach to ‘de-risk’ from China

G-7 leaders have agreed on the need to de-risk, not decouple from China, according to a joint statement released over the weekend as leaders met in Hiroshima, Japan. Despite acknowledging that China’s practices “distort the global economy,” the statement added that the countries were “not decoupling or turning inwards.” However, the statement also confirmed that the G-7 would “counter malign practices, such as illegitimate technology transfer or data disclosure,” and resist economic coercion together. Additionally, the G-7 leaders recognised the necessity of protecting advanced technologies that could be used to threaten national security without limiting trade and investment opportunities.

In a press conference on Sunday, President Joe Biden reiterated the stance that the US was not looking to decouple from China, but to “de-risk and diversify” its relationship. This would involve diversifying supply chains and reducing dependency on any one country, resisting economic coercion, and countering harmful practices. The group also announced their intention to reduce excessive dependencies in critical supply chains, its emphasis on cooperating with China, and building constructive, stable relations.

FAQs:

What is the G-7?
The G-7 refers to a group of seven advanced economies comprising Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. The group is responsible for policy coordination among its member nations on issues including global economic governance, international security and energy policy.

What is meant by de-risking and decoupling?
De-risking in the context of global economies refers to the process of reducing risks associated with certain investments or economic relationships, which can help to ensure a stable financial system. Decoupling refers to the process of disentangling economies, supply chains or other economic relationships.

What challenges does China pose to the global economy?
Chinese practices continue to distort the global economy, threatening other countries’ economic and national interests. Its behavior includes the non-market policies and practices, illegitimate technology transfer or disclosure, and attempts at economic coercion.

What steps are being taken to address such challenges?
Leaders have agreed to de-risk the relationship and diversify certain economic relationships. Additionally, leaders plan to counter malign practices, resist economic coercion, and protect critical technologies that may threaten security.

What is the impact of the growing rift between the US and China?
The economic implications of further decoupling between the West and China could be far-reaching. The Chinese economy might be severely affected, leading it to retaliate by curtailing the supply of critical raw materials that could disrupt global supply chains.

What is the Taiwan factor?
There are concerns that US tensions with China may shift from trade to military, as Washington concludes its negotiations with Taiwan on trade items, marking a potential agreement under the “21st Century Trade” initiative. China has repeatedly warned against deepening bilateral engagement between Taiwan and the US.

G-7 leaders agree on approach to 'de-risk' from China
G-7 leaders agree on approach to ‘de-risk’ from China

G-7 Leaders Reach Consensus on Strategy to Minimize Risk Associated with China

The leaders of the Group of Seven (G-7) have recognized the need to de-risk rather than decouple from China while acknowledging challenges posed by the country’s practices that distort the global economy. In a joint statement, the leaders said they would seek to address the challenges posed by China’s non-market policies and practices. The statement came as US President Joe Biden confirmed his administration was looking to de-risk and diversify its relationship with China by diversifying supply chains and protecting critical technologies for national security. G-7 leaders also emphasised the need to cooperate with China, while saying they would be prepared to build constructive and stable relations and act in their national interests.

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