G7 Nations Discuss Countering China’s ‘Economic Coercion’

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U.S. Treasury Secretary Janet Yellen revealed at a press conference Thursday that members of the Group of Seven (G7) are discussing how to respond to China’s use of “economic coercion” against other nations. Noting that Canada, France, Germany, Italy, Japan, the U.K., and the European Union share similar concerns, she emphasized that any action by the U.S. will be “narrowly scoped and targeted at technologies where there are clear national security implications.”

Yellen clarified that the U.S. government has been internally discussing the issue, but has not established a definitive plan of action. Lawmakers in the U.S. have been pushing the Biden administration to enhance its scrutiny of investments made by American companies and individuals in foreign countries, particularly China, citing concerns about national security and supply chain matters. They have also urged President Joe Biden to issue an executive order.

The Treasury Secretary emphasized that any action by the U.S. would be “narrowly scoped and targeted at technologies where there are clear national security implications.” Yellen noted that it would be most effective if there’s coordinated action by a group of like-minded countries and agreement that this is a useful approach.

In addition, she highlighted that the G7 will “advance our work to mitigate geostrategic risks in our economies. As I said in a speech last month, the United States has a broad suite of tools to mitigate risks to our national security.” Yellen concluded: “We will take narrowly targeted actions when necessary. We are looking forward to working with the G7 to effectively counter economic coercion, which is a key focus of Japan’s presidency.”

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