G7 Nations Seek to Counter China’s Economic Coercion
According to U.S. Treasury Secretary Janet Yellen, the G7 nations are in talks to find means to counteract China’s “economic coercion” of other countries. She mentioned that Canada, France, Germany, Italy, Japan, the U.K., and the European Union have expressed comparable concerns. Yellen stressed that any measures taken by the U.S. would only target specific technologies that pose clear national security risks, and would be limited in scope.
During a press conference held on Thursday in Niigata, Japan, U.S. Treasury Secretary Janet Yellen mentioned that the Group of Seven (G7) countries are engaged in discussions to counteract China’s “economic coercion” against other nations. Yellen made this statement prior to the G7 meeting of finance ministers and central bank governors, which she attended. She also stated that the U.S. has been contemplating imposing more specific restrictions on outbound investments to China for some time, and has been discussing the issue with its G7 partners.
We have been having talks with our G7 counterparts, and it is likely that these discussions will persist during these meetings, even if in an unofficial capacity.
During a press conference before the G7 meeting of finance ministers and central bank governors, U.S. Treasury Secretary Janet Yellen discussed the group’s concerns about China’s “economic coercion” against other nations. Yellen stated that many G7 members share this concern and are considering a joint response.
The U.S. has been internally discussing the issue but has not yet established a definitive plan of action. American lawmakers have been pushing the Biden administration to scrutinize investments made by American companies and individuals in foreign countries, especially China, citing concerns about national security and supply chain issues. Yellen clarified that any U.S. action would be targeted at technologies with clear national security implications.
It would be most efficient if a group of countries with similar views take coordinated action and reach an agreement that this is a useful strategy, said Janet Yellen, the U.S. Treasury Secretary.
The U.S. Treasury Secretary, Janet Yellen, believes that limitations on outbound investment would complement existing national security measures in the U.S., including inbound investment reviews and export controls. Yellen clarified that any restrictions on outbound investment would be focused on national security and not aimed at undermining China’s economic competitiveness or advancement.
She stated that the G7 countries would continue to work together to mitigate geostrategic risks in their economies, using a broad suite of tools available to the United States. Yellen concluded that the U.S. will take narrowly scoped and targeted actions, focusing on technologies where there are clear national security implications.
When specific actions are required, we will act accordingly. Collaborating with the G7 to counter economic coercion is a priority under Japan’s leadership.