The Prime Minister will set out the UK’s plan to expand the tools
we can deploy to tackle global threats to security and prosperity
and counter growing economic coercion, as he opens a session at
the G7 today [Saturday 20th May] on economic security.
Speaking to G7 leaders, will highlight the huge
potential costs to the global economy of hostile activity –
noting for example the impact of Russia’s stranglehold on
European gas supplies last year - and urge bold and pragmatic
collective action.
He will urge the G7 and other international partners to
coordinate our responses to unfair and coercive trading practices
to avoid a costly zero sum game, which could hamper collective
prospects for growth and technological innovation.
It comes as leaders are expected to agree to create a new G7
Coordination Platform on Economic Coercion. The Platform will
address the growing and pernicious use of coercive economic
measures to interfere in the sovereign affairs of other states.
China, for example, has recently used its economic power to
coerce countries including Australia and Lithuania over political
disputes.
The new G7 Coordination Platform will provide a forum to identify
vulnerabilities and coordinate on protective measures, drawing on
insights from policymakers, businesses and academics. It will
also act as the main forum for the G7 to coordinate on rapid
responses to economic coercion when it occurs, ensuring we are
giving each other early warning of possible crises and taking
joint action where necessary.
The Prime Minister will set out the vital importance of precise,
targeted and - as far as possible coordinated - approaches to
protecting exploitation of our cutting-edge technologies for
authoritarian ends, whilst preserving all the benefits of
efficient, innovative free markets and open trade.
Prime Minister said:
We should be clear-eyed about the growing challenge we face.
China is engaged in a concerted and strategic economic contest.
And when Russia weaponised Europe’s energy supplies, it was a
sign of what can happen when we rely too much on states who don’t
share our values.
Our collective economic security matters now more than ever. By
working together and avoiding competition between friends, we can
lift our prosperity, innovate faster and out-compete autocratic
states.
The UK has already taken a number of steps to further bolster our
domestic economic security, including launching the new National
Protective Security Authority within MI5 earlier this year to
provide expert advice to businesses, academics and others. These
complement existing export controls and investment screening
powers under the National Security and Investment Act.
As the Government set out in the Integrated Review Refresh, we
are stronger when we act with allies and partners to defend
global rules, build our economic resilience and protect against
the exploitation of our economic and technological advantage.
G7 leaders are also expected to step up joint efforts to
strengthen the resilience of supply chains for vital goods like
semiconductors and critical minerals.
It comes after the UK agreed a new semiconductor partnership with
Japan on Thursday [18th] and published the UK’s National
Semiconductor Strategy yesterday [19th], which sets out how up to
£1 billion of government investment will boost the UK’s strengths
and skills in design, R&D and compound semiconductors, while
helping to grow domestic chip firms across the UK.
