US and EU set to tighten screws on exports to China

INTERNATIONAL DESK: Washington and the European Union will pledge joint action to tackle concerns focused on China about non-market practices and coordinate their export controls on semiconductors and other goods at a meeting this month, a draft statement showed.

US Secretary of State Antony Blinken, European Commission Vice-President Margrethe Vestager and other senior officials are due to meet for the fourth edition of the EU-US Trade and Technology Council in Lulea, Sweden, on May 30-31.

The draft statement seen by Reuters said the two sides would address non-market practices and economic coercion, and aim to hold regular talks on efforts to stop their companies’ knowledge linked to outbound investment supporting technologies of strategic rivals – an oblique reference to China.

Finance leaders of the Group of Seven advanced economies discussed the need to make global supply chains more resilient by reducing over-reliance on China, German Finance Minister

Japan, which is hosting a three-day G7 meeting to debate key global themes in the city of Niigata, has been leading fresh efforts to diversify supply chains away from China by building partnerships with low- and middle-income countries through investment and aid. Countries such as Germany wanted to reduce its dependency on China.

Meanwhile, the Group of Seven industrial powers and the EU will ban Russian gas imports on routes where Moscow has cut supplies, the Financial Times reported, citing officials involved in the negotiations.(TS)