US Forms Team To Help Countries Defend Against China's Economic 'Coercion' - Bloomberg

In 2021, Washington intervened when Beijing attempted to penalize Lithuania for establishing a liaison office with Taiwan, leading to the formation of a team within the U.S. State Department to assist nations facing economic coercion from China, Bloomberg reports.

When South Korea decided to host a U.S. anti-ballistic missile system, the flow of tourists from China ceased.

Likewise, when Australia accused Beijing of meddling in its internal affairs and sought answers regarding the origins of COVID-19, China retaliated by halting imports such as coal, wine, and beef.

Related: Biden To Announce Tariff Hikes On Chinese Steel, Aluminum Imports: Another ‘Hit To Real Income And Consumer Spending,’ Economist Cautions

“Countries are seeking the ‘Lithuania treatment,'” stated Jose Fernandez, under secretary for economic growth and the environment, referring to Washington’s support for Lithuania, Bloomberg writes.

According to the report, since then, numerous nations across Asia, Africa, Latin America, and Europe have sought guidance on dealing with or mitigating economic pressure from China.

According to Jose Manuel Romualdez, the Philippines‘ ambassador to the U.S., his country is receiving advice from the State Department on exploring new export markets and supporting its agriculture sector in case of a Beijing boycott.

The State Department team, informally known as “the firm,” led by Melanie Hart, operates as a consultancy, providing analysis of trade vulnerabilities, diversification strategies, and public support if requested, Bloomberg said.

The U.S. has adopted a more proactive approach, acknowledging past failures to adequately support allies like South Korea and Australia. However, challenges persist, including internal political divisions and skepticism regarding U.S. trade commitments.

Beijing’s economic coercion, exemplified in the case of Lithuania, involves blocking trade, pressuring multinationals, and diplomatic maneuvers.

Despite the swift response in Lithuania’s case, concerns remain regarding future instances of economic coercion.

Also Read: US Seeks To Counter China’s Economic Clout In Latin America With New Trade Deals

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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