British Prime Minister Rishi Sunak wants G7 countries to look more specifically at the economic threat from China. Bloomberg reports it. According to Sunak, the UK will apply a hard border only in some sectors, such as computer chips.
“It must not become a patchwork of protectionist measures,” he told the London defense conference today. Last week, the leaders of the G7 countries met in Hiroshima, Japan. There was a call for a “constructive and stable relationship” with China. Even if the dependence on China is being phased out in some critical sectors.
In London, Sunak was also questioned about Britain’s strategy to ramp up production in the UK. More so now that the American Inflation Reduction Act has come into effect and British companies – partly due to the rules surrounding Brexit – are being drawn to the United States.
Grant the ride
Sunak also warned of a possible race for subsidies, proposing to introduce a “smart economic policy package” that puts the growth of companies and sectors first. “A run on subsidies would displace allied capacity, and that’s not appropriate,” Sunak said. “We shouldn’t be doing things like this at each other’s expense.”
It is one of the most concrete proposals that Sunak has made in recent months. Pressure from British industry is mounting to support business. Last week, automotive group Stellantis – which builds Vauxhall and Peugeot cars in the UK – complained that manufacturing cars in the UK risks becoming too expensive due to new Brexit rules.
Contrast
In any case, Sunak’s position is more vehement than the tone used by the British Chancellor of the Exchequer Jeremy Hunt last week when he said that subsidies “can play a role” in ensuring the UK’s competitiveness.
What exactly a possible support package from the British government will look like is still unknown, according to Hunt, although Sunak’s government appears to be focusing on the autumn. First of all, he wants to see a reaction from the European Union before a final decision is taken.
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
