To oppose China’s use of harsh trade practices, the G-7 outlined plans for a Coordination Platform on Economic Coercion. Although Beijing’s aggressive trade and investment techniques, particularly against economically disadvantaged countries, are well known, the campaign did not specifically designate China as its objective.
Source: The Economic Times
Given that China’s economic and military might are anticipated to rise over the next several years, the construction of a coordinating platform against economic coercion is a step in the right direction.
The G-7 made an attempt to avoid isolating China even as it issued harsh criticisms of the nation. This strategy is not unexpected given that all of the G-7 members rely on China’s economy, which is the second largest in the world. In fact, several nations, like France, are reluctant to take a combative position against Beijing.
As a result, the statement softened its tone by emphasising that the G-7 was not decoupling or turning inwards. However, acknowledging that economic resilience requires de-risking and diversifying, the G-7 agreed to take both individual and group actions to invest in their own economic health and lessen undue dependence upon crucial supply chains.
The proposed actions are not meant to hurt China or obstruct its development economically. The G-7 also invited China to participate in discussions on macroeconomic stability, global health, debt restructuring for vulnerable nations, and climate change.
The G-7 reaffirmed their vehement opposition to Russia’s invasion of Ukraine during the conference in the strongest possible terms. It promised to escalate political, financial, humanitarian, and military aid to Ukraine while increasing the price of the conflict for Russia and its allies.
The G-7 urged China to put pressure on Russia to stop its military action against Ukraine and remove its soldiers right away, unconditionally, and totally. The G-7 leaders joined Ukrainian President Volodymyr Zelensky, who made a dramatic entry to the meeting, in a show of support for Ukraine. A major win for Ukraine was the announcement by the US that it would permit its Western partners to provide it with US-made F-16 fighter aircraft.
However it’s anticipated that this action will make the current situation worse.
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