PARIS: The trade ministers of the Group of Seven leading industrialised nations criticised Wednesday “economic coercion” by placing arbitrary restrictions on exports, particularly critical minerals, in a clear swipe at China.
While never mentioning China by name, the ministers clearly took aim at Beijing and its stringent export controls on rare earths in their statement, after two days of meetings in France.
“We express our grave concerns regarding economic coercion, including coercion through arbitrary export restrictions that may lead to supply chain disruptions, notably for critical minerals, and undermine economic security and resilience,” the ministers said.
China dominates the global industry for rare earths, which are critical for making a wide range of products — from everyday consumer electronics to equipment used in the defence sector.
The country’s leaders leveraged that strength in spectacular fashion last year, reaching a deal with Washington in October to pause a blistering trade war after Beijing’s curbs on their exports sent shockwaves across supply chains.
Despite resuming exports, the approvals process has been causing headaches for many foreign firms seeking to move supplies and products abroad.
The G7 ministers vowed to work with partners to not only reduce their dependency upon rare earths, but to “ensure that attempts or threats to weaponize economic dependencies will fail.
“We seek to deter and stand ready to take actions, where necessary, against economic coercion,” they added.
Supply of rare earths is expected to be a key discussion point at the summit between US President Donald Trump and Chinese counterpart Xi Jinping in Beijing next week.
China has repeatedly used export controls as well halting imports to put pressure on trading partners.
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