In a historic move, the European Union (EU) and the United States (U.S.) have announced a joint pledge to counter non-market practices and economic coercion, primarily focused on China.
This groundbreaking decision comes ahead of the fourth edition of the EU-U.S. Trade and Technology Council (TTC), set to take place in Lulea, Sweden, on May 30-31.
Top officials, including U.S. Secretary of State Antony Blinken and European Commission Vice-President Margrethe Vestager, are expected to attend the meeting.
Addressing economic coercion and non-market practices
According to a draft statement seen by Reuters, the U.S. and the EU will work together to address concerns related to non-market practices and economic coercion, both issues that have been increasingly associated with China.
The statement also mentioned plans to hold regular discussions on preventing their companies from supporting technologies of strategic rivals through outbound investment.
Although China was only mentioned twice in the draft statement, the language indicates that the focus is primarily on the Asian superpower.
The EU has classified China as a partner in some areas, an economic competitor, and a strategic rival. With a more hawkish stance from the United States, the European Union is set to recalibrate its China policy and recognize the importance of coordination with the U.S.
Coordinating export controls on sensitive items
The draft statement also revealed plans for the U.S. and the EU to coordinate their export controls on “sensitive items,” which include goods with potential military use, as well as semiconductors.
This move signifies a growing concern about the impact of China’s growing influence on global trade and technology.
Highlighting the medical devices sector in China, the draft document stated that the transatlantic partners are “exploring possible actions” in response to the threat posed by non-market policies and practices.
Eu and U.S. to counter disinformation and economic coercion
In addition to addressing economic concerns, the EU and the U.S. also plan to cooperate in countering foreign manipulation of information. This includes China’s amplification of Russian disinformation narratives surrounding the war in Ukraine.
Both sides expressed their commitment to working with the G7 in coordinating actions against acts of economic coercion, such as the trade restrictions China has imposed on EU member Lithuania.
This historic joint pledge by the EU and the U.S. marks a significant step in countering the influence of China on the global stage.
As the two sides prepare for the upcoming TTC meeting in Lulea, Sweden, the emphasis on addressing non-market practices, economic coercion, and the coordination of export controls demonstrates a shared commitment to ensuring fair and equitable global trade practices.
By focusing on areas such as disinformation and economic coercion, the transatlantic partners are also sending a clear message that they will not tolerate attempts to manipulate or undermine the international order.
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