According to the US president, the company has decided to de-risk and diversify supply networks without disconnecting.
According to him, the US continues to support the status quo in Taiwan. Seven of the richest countries in the world want to diversify their supply chains away from China and safeguard important sophisticated technology, but they do not want to break away from the second-largest economy in the world, US Vice President Joe Biden said on Sunday.
Biden said that the G7 had a unified stance on China’s “economic coercion” at the conclusion of the Group of Seven meeting in the Japanese city of Hiroshima, a claim that Beijing vigorously refutes.
“We don’t want to sever ties with China. Our relationship with China is something we want to diversify and de-risk, Biden stated.
That entails adopting measures to diversify our supply chains so that we are not reliant on any one nation for the provision of essential goods.
It entails defying economic pressure.Together, halting bad practices that damage our employees means defending a small number of cutting-edge technology vital to our country’s security. And the G7 has agreed on all of those points.
China retaliated to Biden’s assertions by charging improper tactics on the part of the US.
The Chinese embassy in Britain said that “the United States has engaged in unilateral sanctions, “supply chain decoupling,” and weaponization of economic and trade issues.” The charges and counterclaims represent the most recent exchanges in the China-US trade spat, which broke out in 2018 and resulted in the imposition of tit-for-tat retaliatory tariffs on the majority of export goods.
Technology has been especially impacted by the tensions, as the US announced an embargo on high-end chips in October and put pressure on its allies to do the same.
After Biden and Chinese President Xi Jinping met in Bali in November, there were expectations that the relationship would improve, but those dreams were dashed in February when the “spy balloon” incident broke.
By predicting a “shortly” thaw in the icy relations with China, Biden rekindled the prospect of better relations on Sunday.
Chinese Commerce Minister Wang Wentao is anticipated to go to the US to attend an Apec conference next week, and US officials have also discussed seeing their Chinese counterparts.
According to an ex-minister, Taiwan may pay a “unthinkable” price for free US arms.
19 May 2023
Along with reiterating the US commitment to the one-China policy, Biden made it clear that Washington will preserve the status quo across the Taiwan Strait and continue “to put Taiwan in a position that they can defend themselves.”
He said, “Period. Neither [China or Taiwan] territory can independently declare what they’re going to do.”
“We made it clear that we don’t expect Taiwan to unilaterally declare independence either,” the statement said. “And there is clear understanding among most of our allies that in fact, if China were to act unilaterally, there would be a response.”
He also spoke on the need of preserving peace in the South China Sea, a contentious waterway through which trillions of dollars’ worth of ship-borne trade flows each. British Prime Minister Rishi Sunak backed Biden’s remarks on China, saying that although China posed the biggest threat to global security and prosperity, other top nations shouldn’t try to completely cut ties with it.
With the G7, we are taking action to stop China from meddling in other countries’ sovereign affairs via economic pressure, Sunak stated.
However, at least one G7 leader tried to adopt a friendlier demeanor.
Olaf Scholz, the chancellor of Germany, said the G7 will make sure large investments in China were maintained even as they reduced their dangerous exposure to the economic superpower.
On the eve of the Hiroshima meeting, Scholz told the German network ZDF that supply chains and exports to China will also continue.
He said that although the nations sought to reduce their risk exposure, no one was interested in slowing China’s economic development.