G7 leaders are focusing on “de-risking,” but not “decoupling” from China, they said in a joint statement covered by CNBC.
The details: “We are not decoupling or turning inwards,” the statement said. However, “we recognize that economic resilience requires de-risking and diversifying.”
- “We will seek to address the challenges posed by China’s non-market policies and practices, which distort the global economy,” the leaders continued. “We will counter malign practices, such as illegitimate technology transfer or data disclosure.”
Biden concurs: President Biden echoed these sentiments at a press conference on Sunday, emphasizing the need to “diversify” supply chains so that no one country has a monopoly on any essential product.
- “It means resisting economic coercion together and countering harmful practices that hurt our workers,” he continued. “It means protecting a narrow set of advanced technologies critical for our national security.”
In sum: “We stand prepared to build constructive and stable relations with China, recognizing the importance of engaging candidly with and expressing our concerns directly to China. We act in our national interest,” the G7 statement said.
NAM in action: As exemplified by its recent Competing to Win Tour in Europe, the NAM is working to bring business and government leaders together to strengthen the resilience of manufacturers in the United States and our democratic allies in the face of greater uncertainty with respect to China.
The last word: “Manufacturers have consistently called for a rethink of the U.S.–China relationship to boost competitiveness globally,” says NAM Vice President of International Economic Affairs Ken Monahan.
- “The strategy requires collaborating with allies for supply chain resilience, addressing discriminatory Chinese policies and creating trade openings through robust agreements. Yesterday’s announcement highlights the path ahead.”