G7 condemns China’s unfair economic practices

G7 condemns China's unfair economic practices
German Chancellor Olaf Scholz delivers a statement on June 28, 2022 at Elmau Castle in southern Germany following the G7 summit.

At the end of the summit in Germany, the leaders of the G7 denounced, on Tuesday June 28, “non-transparent and market-distorting interventions in China”. In a communicatedthey said:

Regarding China’s role in the global economy, we continue to consult on collective approaches, also beyond the G7, to address the challenges posed by non-market policies and practices that distort the global economy. .

In the document, G7 leaders condemn China’s unfair economic practices and commit to working together to address these non-trade practices. “develop a coordinated approach to ensure a level playing field for businesses and workers”.

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“Leaders will also discuss China’s role in the debt trap of low- and middle-income countries”specifies a senior official of the White House, assuring that it is a question of“a first for the G7”.

Finally, the G7 will commit, continues this senior American official, to “accelerate progress in the fight against forced labour, with the aim (…) to eliminate all forms of forced labor from global supply chains, including state-sponsored forced labor, such as in Xinjiang”a Chinese province where Muslim minorities are subject to repression by the Chinese regime.

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Creation of a “climate club”

The leaders of the G7 have also agreed on the creation of a “climate club” intended to strengthen and expand cooperation in the fight against global warming. This climate club will be a “intergovernmental forum of great ambition” open to all countries, explain the seven leaders. “We invite our partners, including major emitters, G20 members and other developing and emerging economies, to intensify discussions and consultations with us”the statement continues.

This body aims in particular to bring together countries accepting common rules to avoid competitive disadvantages. These countries would jointly set ambitious targets and exempt each other from climate-related trade tariffs to which non-members would be subject. This would include agreeing carbon pricing standards or uniform regulations for green hydrogen.

At this stage, neither Japan nor the United States intends to introduce a national carbon price, but environmentalists hope that a new dynamic will emerge from this initiative.

The members of this club “will share their best practices” in the fight to reduce CO emissions2 “including through explicit carbon pricing, other carbon mitigation approaches and carbon intensities”explains the statement.

“There are different views on measures such as pricing [du carbone] », acknowledged the German Chancellor, Olaf Scholz, at a press conference, wishing the club “is not limited to the G7 [Allemagne, Etats-Unis, Royaume-Uni, Japon, France, Canada, Italie] but includes many other countries”.

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The World with AFP

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