The Group of Seven (G7) countries, which includes Canada, France, Germany, Italy, Japan, the U.K., and the European Union, are talking about how to respond to China’s attempts to pressure other nations with economic actions. The U.S. Treasury Secretary Janet Yellen explained that any steps taken by the United States will be limited and only apply when there might be possible dangers to national security.
G7 Unites to Stop China’s Economic Reign!
At a press conference held in Japan on Thursday, United States Treasury Secretary Janet Yellen said the Group of Seven (G7) countries are discussing what action should be taken against China for using economic methods to pressure other countries. The conference was organized ahead of the G7 meeting which Yellen and representatives from other nations were attending. This year, Japan is running the G7.
The United States has been thinking about restricting investments in China for a while now. To talk it over with the other countries, they have had some meetings with the Group of Seven (G7) nations. They will continue these conversations, either formally or informally.
The G7 is composed of seven countries: Canada, France, Germany, Italy, Japan, the U.K., and the U.S., plus an extra member called the European Union. Yellen stressed that all G7 members are worried about bad behavior and want to work together to fix it.
The U.S. government is talking about taking action on this issue, but hasn’t made a decision yet. Some people in the U.S., called “lawmakers”, want President Joe Biden to pay extra attention to investments made by American companies and people in other countries, especially China. They also want President Joe Biden to sign an executive order which would make it official.
The U.S. government has said that it will only act on certain matters which could be dangerous to our national security. The Secretary of the Treasury suggested that having other countries join in and agree with the plan would be most effective.
The speaker suggested that the U.S. should introduce new restrictions on outward investments, alongside existing measures such as monitoring incoming investments and controlling exports. Her point was that the new regulations should not be used to prevent China from developing economically.
Yellen said at the press conference that the G7 countries will work together to reduce risks in their own economies. She also mentioned that America has many tools to protect its national security and take special actions if needed. Lastly, she added that they are delighted to cooperate with Japan to stop economic force.
Do you have any thoughts to share about the G7 countries discussing ways of stopping China’s influence? Let us know what you think in the comments!