US, EU to step up co-op on economic security measures

The US and European Union will pledge to step up coordination on security measures like export restrictions, the screening of outbound technologies and foreign investment controls to fight back against economic coercion from countries such as China, Report informs referring to Bloomberg.

The US and EU will also commit at the fourth meeting of the Trade and Technology Council later this month to address these issues within the framework of the Group of Seven as well as the World Trade Organization, according to a draft copy of the TTC conclusions seen by Bloomberg.

The Western allies are struggling to land on a strategy to deal with Beijing’s growing economic clout, particularly with their supply chains so dependent on China.

Washington and Brussels will commit to “continue coordination in the field of export controls and cooperation on investment screening and to address the challenges posed by, among other issues, non-market policies and practices and economic coercion,” according to the draft statement, which could still change.

The statement highlights US and EU concerns with the use of economic coercion to “induce or influence a foreign government into taking, or not taking, a decision or action in order to achieve a strategic political or policy objective.”