Get Tough on China or Risk Losing Control of Global Trade, UK Tells G7

By Reuters
March 31, 2021UK
Get Tough on China or Risk Losing Control of Global Trade, UK Tells G7
International Trade Secretary Elizabeth Truss arrives for a cabinet meeting at the FCO on in London, England, on Sept. 22, 2020. (Leon Neal/Getty Images)

LONDON—Britain will on Wednesday push G7 allies to get tough on China over “pernicious practices” that undermine the international trading system, calling for an overhaul of outdated and ineffective World Trade Organization rules.

Trade minister Liz Truss will host her G7 counterparts and the new head of the WTO, using Britain’s platform as current president of the group of rich countries to promote post-Brexit Britain as a leading free trade advocate.

“This is the time to get tough on China and their behavior in the global trading system, but also modernize the WTO. In many ways it’s stuck in the 1990s,” she told the Financial Times in an interview.

Since leaving the European Union and pinning its economic future on global trade, Britain has stepped up criticism of China’s trade practices.

“People cannot believe in free trade if it is not fair,” Truss said in a statement before the meeting.

“Public trust has been corroded by pernicious practices, from the use of forced labor to environmental degradation and the stealing of intellectual property.”

Containers are seen at the Yangshan Deep-Water Port in Shanghai, China, on Oct. 19, 2020. (Aly Song/Reuters)

Wider relations between London and Beijing have soured in recent months, with tit-for-tat sanctions over China’s human rights record and a bitter row over reforms to the governance of former British colony Hong Kong.

Britain and other WTO members argue that China benefits from exceptions to the rules which were made decades ago and no longer reflect its status as an economic power.

“The WTO was established when China was 10 percent the size of the U.S. economy,” Truss told the FT. “It is ludicrous that it is still self-designating as a developing country—and those rules need to change.”

Other G7 allies, including U.S. President Joe Biden, agree on the need to reform the WTO and to address the need to push back against communist China’s ambitions for global dominance. The problem is finding a solution that all sides agree on.

Echoing the fear of many Western nations that they will lose their grip on control of the post World War Two international order to the Chinese regime, Truss said that unless WTO can be reformed, countries will find other frameworks to trade within.

A strategic review of British foreign policy this month focused on the need to gain more influence in the Indo-Pacific to balance against the Chinese regime, describing its authoritarian leadership and economic might as the biggest state-based threat to Britain’s economic security.

The ministers will be joined on the call by recently-elected WTO chief Ngozi Okonjo-Iweala, who inherited an organization that has struggled to enforce and modernize its rule book.

By William James

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