UK and US in Talks Over Restrictions on Investments in China's Critical Industries

Strategic Insights -

The UK is in discussions with the US over potential restrictions on domestic companies making investments in critical industries in China. Prime Minister Rishi Sunak mentioned that the government is tracking US President Joe Biden's proposals to limit investments in certain parts of the Chinese economy, which have yet to be announced. The talks are part of a broader economic security agenda, with "economic security" high on the agenda at the upcoming G7 summit in Hiroshima. Allies, including the UK, US, Australia, Canada, and Japan, are "well aligned" in their economic approach to China, with similar dialogue taking place among the countries.

Key Takeaways:

  • The UK is in talks with the US over potential restrictions on domestic companies making investments in critical industries in China.
  • The US has not yet announced its proposals to limit investments in certain parts of the Chinese economy, but the UK is tracking the discussions.
  • The talks are part of a broader economic security agenda, with "economic security" high on the agenda at the upcoming G7 summit in Hiroshima.
  • The UK and its allies, including the US, Australia, Canada, and Japan, are "well aligned" in their economic approach to China.
  • Liz Truss, Sunak's predecessor, called for the UK to include Taiwan in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a trade deal between 11 countries.
  • Sunak ruled out the idea of changing the UK's policy on Taiwan, stating that the approach has not changed and the UK has a "very strong unofficial relationship" with Taiwan.

Statistics:

  • 11 countries are part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
  • The US has urged its administration to pay close attention to investment deals with China involving critical technologies such as semiconductors.

Sources:

  • [Sunak, Rishi. BP plane to Japan for the G7 summit. J]
  • [Economic Times. Liz Truss calls for Taiwan to be included in TPP.]