Biden Tightens Pressure on China Ahead of G7... China Warns "Economic Retaliation if Lines Are Crossed"

Strengthening Anti-China Alliance Through US G7 and Quad Meetings
Preparing Executive Orders Targeting China on Rare Earths
Chinese Media Warns of Retaliation Citing Australia

[Asia Economy New York=Correspondent Baek Jong-min, Beijing=Correspondent Cho Young-shin] U.S. President Joe Biden is expected to make his debut in multilateral diplomacy through the Group of Seven (G7) summit held via video conference on the 19th (local time), marking the start of a full-fledged anti-China alliance. China has stated that it will impose economic retaliation if the U.S. crosses the line, raising concerns about global instability surrounding U.S.-China relations.

Participants of the Quad Foreign Ministers' Meeting held last October are taking a commemorative photo.
[Image source=Yonhap News]

White House Press Secretary Jen Psaki said at a regular briefing on the 18th (local time) regarding the G7 summit agenda, "President Biden will also discuss the importance of revising international rules to navigate economic challenges posed by China and others." According to this, President Biden is expected to address the importance of continued economic support from advanced countries for economic recovery and global climate crises, but by specifically naming China, he is likely to strengthen the importance of an alliance-centered anti-China coalition.

British Prime Minister Boris Johnson, chair of this year’s G7 summit, has expressed his intention to invite countries such as South Korea to expand the G7 to a G10, making it highly likely that this will be discussed at the meeting. This year’s G7 summit will be held from June 11 to 13 over three days at Carbis Bay, a resort in southwest England. South Korea, India, and Australia have been invited to this meeting.

The Biden administration also took a clear stance on the anti-China alliance through the Quad foreign ministers’ meeting of the four countries?U.S., Japan, India, and Australia?held on the same day.

State Department spokesperson Ned Price said that the participants agreed on strengthening cooperation to promote a free and open Indo-Pacific region, including freedom of navigation and territorial integrity. This suggests that the U.S. shared with its allies its intention to check China’s expanding influence in the Indo-Pacific region.

This meeting was the first held since the Biden administration took office. While the Biden administration has reversed most of the foreign policies pursued by the Donald Trump administration, it has expressed its intention to continue the Quad.

The Biden administration is also seeking a response policy toward China in economic policy. CNBC reported that President Biden is expected to issue an executive order directing a review of industries highly dependent on overseas supply chains, targeting China.

According to a draft executive order prepared by President Biden’s economic and national security teams, the review will be conducted in two phases. First, a priority review will be conducted over 100 days on semiconductor manufacturing and trade, high-capacity batteries and electric vehicle batteries, rare earth elements, and medical supplies. The second phase will involve various investigations into equipment in defense, health, energy, and transportation sectors. One year after the executive order is issued, the task force responsible for the review will submit recommendations to the president, including potential measures such as diplomatic agreements and changes in trade routes.

Although China is not mentioned in the executive order, CNBC said it is likely an effort to assess how much the U.S. economy and military depend on Chinese exports in critical areas.

A representative example is rare earth elements, most of which are imported from China. China has not hidden its intention to use rare earths as a weapon in conflicts with the U.S.

Chinese media evaluated the G7 and Quad meetings as pressure on China and argued that response strategies must be prepared.

The state-run Global Times emphasized that China should maximize the use of economic cards to respond to U.S. provocations, recalling that Australia, a Quad member, is facing economic retaliation from China. This serves as a warning that China will impose economic retaliation on countries joining the anti-China alliance.