China urges economic cooperation ahead of G7 summit

Chinese vice premier Zhang Guoqing called for a free and convenient trade environment and emphasised taking an objective view of the comparative advantages of all countries in his remarks on Thursday, according to Chinese official media Xinhua. “China is unswervingly expanding high-level opening-up and will continue to share development opportunities with other countries to inject more certainty and stability into the world economy,” he said. Macron, who is hosting the G7 summit in Evian-les-Bains, France, next week, has sought to engage with Beijing in a last-ditch attempt at a cooperative approach before the EU decides whether to toughen its trade policy towards China, French officials say. “Our common goal should be clear. It is to put the global economy back on a stronger growth path. I think we all share this objective. In order to deliver, we need obviously some domestic policies and effective international cooperation,” Macron said at the start of the video conference. “Coordination is key, and if they (global imbalances) are not addressed through a co-ordinated approach among the world’s major economies, these imbalances risk unwinding in a disorderly manner, leading to abrupt economic and financial adjustments,” he added. EU leaders will meet immediately after the June 15 to 17 G7 gathering, with China set to feature prominently on the agenda. ‘global convergence for growth’ Zhang’s inclusion in the so-called “Global Convergence for Growth” video conference, which was announced by a Chinese foreign ministry spokesperson, is an unusual instance of China engaging with the G7, which comprises France, Britain, Canada, Germany, Italy, Japan and the United States, alongside the EU. Beijing has long criticised the grouping as illegitimate for discussing world affairs and for being unrepresentative of the world order. There’s growing alarm in Europe at China’s record trade surplus and move up the value chain, with its exports of electric vehicles, lithium-ion batteries and other high-tech products threatening European manufacturers, in what analysts describe as a “second China shock” following its dominance of low-value industries in the 2000s. China has defended its industrial policies and rejected allegations of Chinese exporters unfairly benefiting from state subsidies. It says other countries are undermining global trade rules instead by imposing unilateral tariffs. Since December, the Chinese capital has received leaders from five G7 nations in a flurry of high-level meetings. Macron met Chinese President Xi Jinping in Beijing that month, telling him China should help rebalance economic relations cooperatively, or Europe would have little choice but to adopt more protectionist measures. However, EU nations remain divided on how to approach China. Germany, Europe’s largest trading economy, has long been reluctant to impose tariffs on one of its main export markets. But as Chinese carmakers compete more directly with German manufacturers, some German lawmakers have begun calling for a tougher stance towards Beijing.