WASHINGTON - The G7 leaders plan to address China's use of "economic coercion" in their upcoming joint statement, as reported by a U.S. official familiar with the matter.
The statement is expected to be released during the G7 summit in Hiroshima next week, along with a more comprehensive proposal on how the group will work together to counter such tactics from any nation.
According to a US official familiar with the discussions, the upcoming G7 summit's joint statement will have a specific section on China that addresses concerns over their use of "economic coercion" in international dealings.
This statement will be accompanied by a more comprehensive proposal outlining how the seven advanced economies will counter any country's "economic coercion."
The US President, Joe Biden, has emphasized China as a key focus of his foreign policy and seeks to maintain a balanced and competitive relationship with China to avoid a potential conflict, including regarding Taiwan.
The G7 is highly interconnected with China, which is the world's largest exporter and a major market for many of the member countries' businesses.
Last month, China criticized the G7 foreign ministers' statement on similar issues, calling it "arrogant" and "prejudiced against China," and complained to this year's G7 host, Japan. During the Trump presidency, G7 statements on China were typically brief, but the Biden administration has sought to make them more forceful.
The annual joint statement issued by the G7 leaders is intended to demonstrate that the influential nations are united on various political and economic topics. The G7 leaders will also indicate their willingness to work with China on topics such as climate change.
According to a U.S. official, the principle of "de-risking" and "diversifying" rather than completely separating the U.S. and Chinese economies is a common unifying factor among G7 members.
However, the exact wording of the joint declarations is still subject to negotiations and may be adjusted before the summit.
The upcoming G7 summit will determine whether the wealthy democracies can reach a common approach to China, the world's second largest economy. The G7 finance leaders meeting in Niigata, Japan, have been discussing ways to reduce over-reliance on Chinese manufacturing and supply chains, including by collaborating with low- and middle-income countries.
While the US wants to reach an agreement, other G7 members are hesitant to commit to specific economic statecraft tools. One contentious issue is controls on outbound investment in China, which some members are skeptical about.
The policies aim to restrict China's military access to technological tools, and the Biden administration views them as complementary to export controls that restrict access to certain semiconductors.
According to a US official, while each member of the G7 may have their own approach to China, there are shared principles that unite the group in their common approach.
During the G7 finance meeting in Japan, US Treasury Secretary Janet Yellen commented on China's use of economic coercion with Australia and Lithuania.
However, there is still no progress on resolving the US debt ceiling stalemate, and a scheduled meeting between President Biden and top lawmakers has been postponed until early next week.
Despite this, officials anticipate that Biden will attend the two-day G7 summit followed by visits to Papua New Guinea and Australia, with the aim of reinforcing the US stance in the Asia-Pacific region dominated by China.