No use for military purposes
G7 plans to withdraw funds for technology abuse
05/20/2023 10:49 am
Some states are already allowed to veto large foreign investments in sensitive areas. The G7 is planning something similar in the future for the sale of its cutting-edge technologies: Misuse and military use are to become expensive.
The G7 countries want to introduce a new control mechanism to prevent their sensitive technologies from being used for military purposes. According to the final declaration of the summit in Hiroshima, Japan, their cutting-edge technology must not be used in the future “to increase military capabilities that endanger international peace and international security.” Where necessary, the G7 states want to “take further measures”.
One of the possibilities mentioned in the declaration is that the G7 nations could reduce their foreign investments in affected countries or restrict the export of sensitive goods. Jake Sullivan, US President Joe Biden’s national security adviser, explained in Japan that the US has been working for a long time to lay the legal basis for a preliminary screening of foreign investments. Referring to the G7 declaration, he made it clear that each country would then have to decide for itself how to approach this issue.
Roughly speaking, the considerations are about ensuring that a foreign nation cannot invest on a large scale in industrial sectors of rival states that are important for the national security of the country concerned – for example in the defense or technology sector. The move is primarily aimed at China, which, for example, is allowed to invest in the Port of Hamburg despite major concerns. In such sensitive areas, some states are already allowed to screen large foreign investments. The new technology mechanism of the G7 follows a similar approach.
Australia and Lithuania as a warning example
In addition, the G7 countries want to work on better counteracting economic “coercive measures” taken by other countries. “We will work together to ensure that attempts to weaponize economic dependence (…) will fail and have consequences,” they declared.
The group of states announced the establishment of a coordination platform on this topic, which should improve joint preparation, deterrence and response to such coercive measures. It is also intended to improve cooperation with partners outside the G7.
Here, too, the countries have China in mind, among other things, even if the country was not explicitly mentioned in the declaration. US Treasury Secretary Janet Yellen had previously referred directly to China. She cited Australia and Lithuania as examples, which China had put under heavy pressure because of political differences.