G7 Finance Ministers Pledge to Diversify Supply Chains and Control Inflation, but China Not Explicitly Mentioned

13.05.2023

A three-day meeting of finance ministers from seven nations concluded today, with the ministers pledging to work together on controlling inflation, diversifying supply chains and addressing vulnerabilities in the banking system, according to a joint statement. However, the statement did not mention China specifically, nor did it mention the so-called “economic coercion”.

(Deutsche Welle Chinese website) During the G7 Finance Ministers Meeting held in Niigata, Japan from May 11th to 13th, the finance ministers of the seven major industrial countries in the world issued a joint statement on the last day of the meeting. In addition to expressing solidarity and support for Ukraine, Alongside its determination to impose sanctions on Russia for aggression, it also promised to control inflation and help countries that are struggling with heavy debts.

The finance ministers also pledged to work together to create more stable and diverse supply chains for the development of clean energy and “globally increase economic resilience to shocks”. “We need to remain vigilant and maintain agility and flexibility in macroeconomic policy amid a highly uncertain global economic outlook,” the joint statement said.

Solve bank data, regulatory loopholes

Given that a while agoThe impact of the bankruptcy of small and medium-sized banks in the United States, in an effort to reassure investors, the finance ministers at the meeting continued their view after last month’s assessment that the global financial system is “resilient”. However, they also pledged to address “data, oversight and regulatory gaps in the banking system”.

on the other hand,Although the outside world expects China issues to be the focus of this meeting, but there is no specific mention of China in the joint statement, nor does it mention the so-called “economic coercion” by China in pursuit of political goals. However, Japan, the host of the meeting, took the lead in efforts to diversify its supply chain at the meeting, which was seen as an attempt to reduce its heavy dependence on China.

Integrating low- and middle-income countries into supply chains

The new idea proposed at the meeting of finance ministers isHave the G7 provide assistance to low- and middle-income countries so that they can play a greater role in supply chains for energy-related products, such as refining minerals and processing and manufacturing parts. “Diversification of supply chains contributes to energy security and helps us maintain macroeconomic stability,” the joint statement said, adding that the program would be launched “by the end of this year at the latest.”

The statement made no mention of the idea put forward by the United States,That is, consider implementing targeted restrictions on investment in China to combat the Chinese government’s use of “economic coercion” against other countries. But the statement still stressed that the G7 countries would work to ensure that foreign investment in critical infrastructure “does not compromise the economic sovereignty of the host country”.

China: G7 should stop engaging in cliques

Regarding the U.S. accusation, Chinese Foreign Ministry spokesman Wang Wenbin criticized on May 12: “When it comes to economic coercion, the first one that should be condemned is probably the United States. The United States has repeatedly generalized the concept of national security and abused export control measures. , using discriminatory and unfair practices against companies from other countries, which seriously violates the principles of market economy and fair competition.” He also said at a regular press conference: “China itself is a victim of economic coercion by the United States, and we have always firmly opposed it. Other countries engage in economic coercion. We urge the G7 to conform to the general trend of an open and inclusive era, stop engaging in closed and exclusive “small circles”, and stop being accomplices and accomplices in economic coercion.”

This week’s meeting of G7 finance ministers laid the groundwork for next week’s G7 leaders’ summit in Hiroshima, which U.S. President Joe Biden is also expected to attend.

(Reuters, Associated Press)

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