G7 ministers plan measures due to China's excessive commodity production

Western countries are concerned that the Chinese government's huge subsidies for technology, "green energy", electric vehicles or batteries, could flood the world with cheap products and threaten China's competitors in those sectors.

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Photo: REUTERS
Photo: REUTERS
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

The G7 finance ministers announced at today's meeting in Stresa, Italy, that they plan to take measures due to China's excessive production of goods, which is why Western markets are flooded with subsidized cheap products - it follows from the draft of the final statement, which was seen by Agence France-Presse.

Ministers from the seven richest liberal economies also expressed "concern" that China is implementing "non-market policies and practices" that "harm workers, industries and the collective economic strength of G7 countries".

US Finance Minister Janet Yellen called on the G7 to form a "clear and united front" against China's "excessive industrial capacities" that create a "macroeconomic imbalance" and called on countries to prepare a "response" to it.

The G7 finance ministers intend to continue to monitor the potential negative effects of China's overcapacity and plan to take measures to respect equal conditions of competition in accordance with the World Market Organization, the draft statement reads.

French Economy Minister Bruno Le Maire also today called on the G7 to create a united front to protect its industrial interests from China, warning that a trade war should be avoided.

Western countries are concerned that the huge subsidies the Chinese government is pouring into technology, "green energy," electric vehicles or batteries, could flood the world with cheap products and threaten China's competitors in those sectors.

In mid-May, Washington announced a substantial increase in tariffs totaling $18 billion on Chinese products, particularly electric vehicles and batteries for those vehicles, as well as key metals.

The European Commission, which attends the G7 summits as an organization, together with the representatives of France, Germany and Italy, which are its members, is in conflict with China, which it accuses of disrupting the European market by marketing a large amount of goods at unrealistically low prices.

After cars, railways and solar panels, Brussels opened an investigation in April into unfair practices by Beijing-subsidized wind power producers, which could result in tariffs.

On the other hand, the Chinese Minister of Trade, Wang Wentao, accused the European Commission that by launching investigations into China's subsidies, it is pursuing a protectionist, not a "green policy" as it claims.

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