G7 Business Leaders in Paris Say China's Economic Miracle Is Due to Hard Work and Innovation, but WTO Reform Is Necessary

After Patrick Martin, President of the French Business Federation, hosted a G7 Business Leaders Meeting at the French Ministry of Foreign Affairs on Wednesday, a report by *Les Échos* late Thursday revealed that G7 business leaders were highly reluctant to impose tariffs. Instead, they advocated for reforming the World Trade Organization (WTO).

Representatives from major business organizations of the seven most advanced industrialized nations ruled out any possibility of adopting trade protectionism.

The G7 acknowledged that targeted support for specific industries during crises or economic transitions might be "appropriate," but emphasized it must "never cause significant market disruption."

The report noted that when asked whether they should follow President Macron’s suggestion to impose tariffs on imported Chinese goods to prevent an influx of Made-in-China products, G7 business leaders responded with caution—and even some discomfort.

"We are not targeting China alone. This issue isn't just about Egypt, Brazil, Turkey, and India—it also concerns the G7. It's a global challenge," said Fabrice Lescas, Deputy Chairman of the French Business Federation (Medef).

The report highlighted that G7 business leaders acknowledged part of China’s economic miracle lies in hard work and innovation. "Moreover, this is exactly what we ourselves are striving for," emphasized Fabrice Lescas.

Wolfgang Niedermark, representing the German Employers' Association (BDI), advocated continued trade and investment with China, yet warned against being "naïve." "We need time to establish appropriate mechanisms. We cannot simply raise tariffs or resort to protectionist measures. Large multinationals and small and medium-sized enterprises are affected differently. There is no one-size-fits-all solution. We must adopt smart, targeted, and strategic actions."

The report stated that Germany’s biggest concern is bureaucratic red tape in Europe. "Every day, industrial jobs are lost. Every day, companies go bankrupt due to excessive costs—especially the heavy burden of bureaucracy," German Chancellor Friedrich Merz said in parliament on Thursday. Wolfgang Niedermark also expressed concern over potential bureaucratic burdens posed by the EU Commission’s proposed *Industrial Accelerator Act*, aimed at boosting European competitiveness.

Getting the WTO Back on Track

Whether improving the competitive landscape depends on the World Trade Organization is, according to the G7, undoubtedly yes. They called for greater visibility, stability, and transparency. The G7 supports "better coordination" of industrial and customs policies and advocates for WTO reform. Currently, the WTO is paralyzed due to deadlock among major economies and controversial rules in the face of new global trade realities. Rain Newton-Smith, Chair of the Confederation of British Industry (CBI)—the UK’s leading business organization—said: "We all agree on reforming the WTO."

The report concluded that even Suzanne P. Clark, President of the U.S. Chamber of Commerce, supports this proposal. "We must understand that 80% of global trade takes place under the WTO framework—we must not abandon it. The WTO is a crucial institution, even if it needs modernization. We support free and fair trade, not broad tariff increases." Wolfgang Niedermark conceded: "The best solution would be to reform the WTO, but we’re not optimistic about that, so we must consider alternative options." His words hit the nail on the head.

Source: rfi

Original: toutiao.com/article/1867817094684679/

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