Leaders from the Group of Seven agreed on Saturday to launch a new initiative to counter “economic coercion” and vowed to challenge China’s “malign” practices.
A statement about the plan to tackle coercion and protect the economies of the group and its allies did not name China or any other country.
However, the communique issued at the end of the summit in Hiroshima, Japan said the group of advanced economies would act to reduce its dependency on China in critical supply chains.
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“We will seek to address the challenges posed by China’s non-market policies and practices, which distort the global economy,” the communique read.
“We will counter malign practices, such as illegitimate technology transfer or data disclosure.”
The leaders from Japan, Britain, Canada, France, Germany, Italy and the United States denied they were “decoupling” from China but instead trying to “derisk” the relationship.
“We also recognise the necessity of protecting certain advanced technologies that could be used to threaten our national security without unduly limiting trade and investment,” they said.
The Chinese foreign ministry said it had launched a solemn protest to G7 and the host country Japan, accusing them of “manipulating the China-related agenda and vilifying China”
It also accused the group of supporting Taiwanese separatists and “violently meddling in China’s domestic affairs” citing references to Hong Kong, Tibet and Xinjiang.
The G7 meeting entered its second day on Saturday, with the perceived threats posed by China and Russia overshadowing most discussions.
The war in Ukraine was a key theme of the summit – with President Volodymyr Zelensky attending and the bloc tightening sanctions on Russia – but it also sought to forge a united stance towards China, including on issues such as Hong Kong, Taiwan, the South China Sea and human rights.
Observers have previously highlighted a gap between the approach taken by some European countries and the US, while Beijing launched a charm offensive in the build-up to the summit seeking to persuade the Europeans not to simply follow Washington’s lead.
The communique urged China to pressure Russia to end the Ukraine war and voiced concern over the East and South China Seas, saying the group opposed “any unilateral attempts to change the status quo by force or coercion”.
It added: “There is no legal basis for China’s expansive maritime claims in the South China Sea, and we oppose China’s militarisation activities in the region.”
But it also stressed it has not changed its position on the one-China policy.
The group also warned about China’s “accelerating build-up of its nuclear arsenal without transparency [or] meaningful dialogue” and said it “poses a concern to global and regional stability”.
Ukrainian President Volodymyr Zelensky attended the summit on Saturday. Photo: AP alt=Ukrainian President Volodymyr Zelensky attended the summit on Saturday. Photo: AP>
Earlier, the leaders said the new Coordination Platform on Economic Coercion would use an early warning system and rapid information sharing to come up with coordinated responses to deter and counter the practice.
The group said there had been a “disturbing rise in incidents of economic coercion” attempting to “undermine the foreign and domestic policies and positions of G7 members” and partners.
“Attempts to weaponise economic dependencies by forcing G7 members and our partners, including small economies, to comply and conform will fail and face consequences,” the bloc said.
The G7 countries also promised to work together to support the supply chain of middle and low income countries so that they would be more resilient and less vulnerable.
British Prime Minister Rishi Sunak said before the meeting the new initiative “will address the growing and pernicious use of coercive economic measures to interfere in the sovereign affairs of other states”.
“China, for example, has recently used its economic power to coerce countries including Australia and Lithuania over political disputes.”
Imports from both countries were hit by a series of barriers after their governments angered Beijing by respectively calling for an inquiry into the origins of Covid and strengthening economic and diplomatic ties with Taiwan.
The summit also vowed to make sure cutting edge technology developed by member states would not be leaked.
“As we deepen research and development among G7 partners on critical and emerging technologies, we affirm our shared responsibility and determination to coordinate on preventing the cutting-edge technologies we develop from being used to further military capabilities that threaten international peace and security.”
“The communique will note that each country has its own independent relationship and approach, but we are united and aligned around a set of common elements,” US White House national security adviser Jake Sullivan told reporters at the summit early on Saturday.
He also added that the communique should not be a surprise to China, which he said was well aware of the concerns of the G7 states.
The Chinese foreign ministry’s response accused the G7 countries of supporting Taiwan separatist forces, which it said would cause a serious blow to stability in the Taiwan Strait.
“Nobody should underestimate China’s determination, will and power to protect its sovereignty and territorial integrity,” it said.
It also accused the bloc of meddling in China’s domestic issues by mentioning Xinjiang, Tibet, and Hong Kong and attempting to provoke conflicts and create rivalries in the South China Sea.
It also called on G7 countries not to become “accomplices” in US attempts at economic coercion.
“The days when a few Western countries recklessly intervene in other countries’ domestic affairs and manipulate international affairs is over,” it said.
The Chinese embassies in Britain and Canada had already issued pre-emptive criticisms of the plan to counter economic coercion by the time it was unveiled.
The embassy in London said China was the victim of “economic coercion” by the United States through export sanctions and discrimination against certain state enterprises.
The website of the Chinese embassy in Canada also carried a statement in which the ambassador Cong Peiwu accused the US of forcing its allies to form a “small circle” against China and called on the G7 leaders to drop their cold war mentality.
Additional reporting by Reuters
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