The Biden administration is reportedly planning to ask the G-7 nations to limit Chinese investments in their countries. The proposal is expected to be discussed at the G-7 summit in Japan next month. This comes in the wake of reports that Biden plans to sign an executive order in the cominig weeks that will limit investments from American businesses into Chinese companies.
Much like the executive order, the proposal would involve the G-7 nations agreeing to limit Chinese investments in certain sectors, such as technology and infrastructure, in response to China’s recent escalations with Taiwan and their reluctance to engage meaningfully with Russia with regards to the ongoing Ukrainian war. The Biden administration is also reportedly considering imposing additional tariffs on Chinese imports to discourage Chinese investments in G-7 countries.
The G-7, consisting of seven of the world’s most advanced economies, including the United States, the United Kingdom, France, Germany, Italy, Japan, and Canada. The group was formed in 1975 to coordinate economic and security policies.
China is the world’s second-largest economy and has been rapidly expanding its economic and geopolitical influence in recent years. The Biden administration is concerned that Chinese investments in G-7 countries could give Beijing an upper-hand as murmurs of the “De-Dollarization” grow louder.
Though experts warn that if the G-7 nations agree to limit Chinese investments, it could have a significant impact on the global economy, as it continues to recover from the Covid-19 downturn.
