During the first day of their meeting in Stresa, Italy, European finance ministers of the G7 stressed the need for unity in addressing China’s “unfair” industrial policies.
The finance ministers of Germany, France and Italy called on them to form a united front against the growing strength of Chinese exports.
This call comes in line with the recent increases in customs tariffs imposed by the United States on Chinese imports, which include electric cars, their batteries, computer chips, and medical products, and against the tariffs that China recently imposed on European and American goods.
Consecutive warnings
German Finance Minister Christian Lindner warned of the outbreak of a trade war with China against the backdrop of controversy over imposing punitive customs duties on Chinese products.
Lindner said today, Friday, during the G7 finance ministers’ meeting, that it must be verified objectively and with great care whether there is Chinese dumping, adding that any unfair practices must be responded to through the World Trade Organization at best, but if necessary also through coordinated joint measures. .
At the same time, the minister stressed that free and fair global trade as a whole should not be weakened. “Trade wars only happen to losers, you cannot win them,” he said.
In turn, French Finance Minister Bruno Le Maire stressed the importance of avoiding a trade war with Beijing, noting that “China remains our economic partner, but the G7 needs to protect its industrial interests against unfair trade practices.”
Reuters suggested that Germany, with its export-based economy, would suffer a major loss as a result of escalating trade tensions.
Meanwhile, Italian Economy Minister Giancarlo Giorgetti indicated that the European Union may eventually follow the United States’ lead on tariffs.
Reuters quoted Giorgetti as saying, “The United States has made very difficult decisions, and Europe may have to think about whether it will do the same.”
Giorgetti stressed the need for G7 unity to prevent European countries from competing against each other in response to the increase in Chinese exports, according to Reuters.
Increased US customs
Last week, Washington unveiled a series of new duties and tariffs on Chinese imports, raising concerns about potential retaliation from Beijing and its impact on global trade.
Although the United States did not ask its partners to impose similar measures, US Treasury Secretary Janet Yellen urged the G7 allies to show solidarity with Washington.
The G7 finance ministers stressed the importance of unity in confronting global economic challenges, including China’s trade practices and support for Ukraine.
