The Treasury Secretary of the Seventh Kingdom Group warned Chinese cheap export products
Last Saturday, senior financial officials of the developed economies in the world reached an agreement on how to use Russia's frozen Central Bank assets to assist Ukraine and warned China to the marketing products of these countries.Double crisis.
The Treasury Secretary of the Seventh Kingdoms held a three -day meeting in Streas, Italy, and they accepted more ambitious sanctions and protective means.The considering proposals may deepen the differences between the wealthy Western Economy Alliance and Russia, China, and its allies, and exacerbate the global division that economists worry about.
In recent years, the Seven Kingdoms Group has tried to influence the efforts of these two powerful opponents to achieve limited achievements, but rich countries are making new efforts to test the limit of the joint economic strength between China and Russia.
In the joint statement (bulletin) issued on Saturday, the decision makers said that at the time of geopolitical crisis and trade tensions, they will be united in these two aspects.
"We are discussing possible ways to benefit the huge profits generated by the frozen Russian sovereign assets to benefit Ukraine. This discussion is making progress," a statement writes.
Regarding China, the Treasury Secretary expressed concerns about its "comprehensive use of non -market policies and practices to damage our workers, industries and economic recovery."They agreed to monitor the negative impact of excess capacity in China, and "considers taking measures to ensure a fair competition environment."
The increasing concern of how to deal with Russia and China has led to a three -day meeting held on the shores of Lake Macari.The United States has been promoting more tough measures for Russia's assets and China's exports, while European countries are more cautious when dealing with internal differences.
Economic leaders have spent a lot of time discussing how to thaw the details of the Russian Central Bank of Russia's 300 billion US dollars frozen assets to provide longer assistance to Ukraine from next year.
"The key is to ensure that the Ukrainian government provides appropriate, powerful and long -term financing," French Financial Secretary Bruno Lermel said in the meeting on Friday."They need our support, they can rely on the joint support of all the countries of the Seven Domestic Groups."
Saturday, the United States proposed to use the unexpected profits of these assets to provide Ukraine with a maximum of $ 50 billion in loans, and received support from some countries of the Seven Groups. This proposal was getting higher and higher.
"This is indeed the main plan currently considering," said after the meeting after the meeting on Saturday."This is a effective way to advance. It seems that it has indeed received widespread support."
But there are still some unreasonable problems, including if interest rates decline (this will erode the profit generated by assets), how will countries share loan -related risk burdens and how to deal with loans at the end of the war.Using these assets to support another complex factor for long -term loans is that EU sanctions authorized to freeze most of Russian assets must be updated regularly.
The financial ministers of each country will hurry up in the next three weeks to finalize the details of various plans.They predict that the seven -point group leader meeting in Italy next month will decide how to continue to advance.
As the international community is tired of this war, it makes it difficult for the United States and Europe to provide a package of help to Ukraine, so it is also increasingly urgent to reach an agreement.The upcoming elections around the world, especially the US elections, have increased the pressure of providing future capital flow to Ukraine.
The senior researcher at the Atlantic Council Charles Lichfield said: "If you can lock this mechanism, it is good, so no matter what the results of the US election, there are 50 billion US dollars to dominate."
Although the Russian issue occupies a core position in the talks, it is also concerned about the threat of China's industrial capacity.Decision makers are worried that a large number of Chinese green energy technology products will weaken the clean energy industry in the United States and Europe, leading to unemployment, as well as solar panels, batteries, electric vehicles and other products to China.
Last week, President Biden raised tariffs on some imported goods in China, including 100%tariffs on electric vehicles, and retained President Trump's tariffs on Chinese goods worth more than $ 300 billion.This week, Yellen called on the European and Seventh -Kingdoms Group to fight against China more strongly.
"We need to unite and send a unified information to China so that they can understand that not only one country has this feeling, but that their strategy is facing a wall of opposition," Yellen's opening in the meeting opened at the opening of the meeting.Said at a press conference.
Many European countries are investigating China's trading behavior and considering levying more tariffs.However, they have adopted different methods. Some countries such as Germany are worried that the trade war with China will harm the country's economy because they seriously depend on exports to the Chinese market.German Treasury Minister Christian Lindner warned that if a trade war is conducted, "everyone is a loser."
There are signs of this week that China and Russia are preparing to respond to the actions of the Seventh Kingdoms Group.
The Chinese EU Chamber of Commerce said on Tuesday that Beijing is considering increasingly raising car import tariffs after levying new tariffs in the United States and a new tariff in Europe.
"This potential action has an impact on auto manufacturers in Europe and the United States," the business organization wrote.
At the same time, Russia is mobilizing to deal with the use of its assets to help maintain Ukraine's plan.A spokesman for the Russian Ministry of Foreign Affairs said that the idea of using these assets to make a profit is to try to make the theft at the national level legalization and say that the European Union will feel Russia's comprehensive revenge.
Russian President Putin signed a decree on Thursday, indicating that Moscow will take action to compensate for losses suffered by its sovereign assets by seizing US property.Although Russia can hardly reach US state -owned assets, it can trace private investors' property in Russia or the Russian account.
Yellen's threat to Russia last Saturday, she pointed out that Russia has warned Russia to confiscate US property.
"This will not stop us from continuing to use action to support Ukraine," she said.
However, European officials still have to be vigilant on the possible impact, where most of Russia's assets are there.Pascar Donohoho, chairman of the euro group (European Treasurer's Club), said that the possibility of retaliation of Russia has always been a topic of discussion.
"Of course, Russia's possibility of taking additional measures in the future always exists," Donoho said, and explained that he believes that the Western alliance ownership has the right to take the actions they are considering."Any sanctions or any additional economic measures we take will respect international law."
The policies that the Treasury Secretary is considering is currently not sure whether the policy is successfully encouraged Russia or China to change its direction.Although there are differences in internal, the ministers seem to agree that the united front is their greatest hope.
"In the context of Russia's brutal aggression on Ukraine, China's growing authoritarian authority and economic dilemma, the Seven Kingdoms Group is reshaping strong unity."Mark Sobel, Chairman of the Forum, said.
