G7 pressure on China over subsidies ‘doomed to fail’ even as Biden administration gathers coalition
- Trade ministers from the Group of 7 (G7) – the United States, Germany, Britain, France, Canada, Italy and Japan – on Wednesday pledged collective action against “harmful industrial subsidies” without naming China directly
- China responded by saying it “won’t accept any accusation” of its trade practice as it “has always honoured its commitments” since it joined the World Trade Organization (WTO) at the end of 2001
Pressure from the G7 to force China to change its economic behaviour is “doomed to fail”, and Beijing might simply choose to ignore it if external pressure continues to mount, experts said.
On Wednesday, trade ministers from the Group of 7 (G7) – the United States, Germany, Britain, France, Canada, Italy and Japan – pledged collective action against “harmful industrial subsidies” without naming China directly.
British Trade Minister Liz Truss, with Britain the current president of the bloc, had said before the inaugural meeting under the new G7 Trade Track that it was time for the group to “get tough on China and their behaviour in the global trading system”.
Andy Mok, senior research fellow at the Centre for China and Globalisation, a Beijing think tank, insisted that China would not back down if the G7 statement is in fact an attempt to pressure Beijing, and that any moves would be “doomed to fail”.
I think some are just opting out, and some are only participating by providing verbal support. I think they may not follow as vigorously on actual action later
“This of course is the US looking to maintain its supremacy. I think several of these other G7 countries are also caught in a bind, because on the one hand the US is pressuring them to form this united front, and of course they know that China does not want to see this ganging up against China and they know there will be consequences as China becoming much more assertive,” said Mok.