Current:Home > NewsChina has threatened trade with some countries after feuds. They’re calling ‘the firm’ for help -Wealth Momentum Network
China has threatened trade with some countries after feuds. They’re calling ‘the firm’ for help
View
Date:2025-04-13 02:26:28
WASHINGTON (AP) — Business is good at “the firm.”
The eight-person team at the State Department is leading Washington’s efforts to ease the economic blowback for countries targeted by China.
It emerged in the scramble to help Lithuania during a spat with China over Taiwan two years ago. Today, “the firm” is helping growing numbers of nations cope with what diplomats call economic coercion from Beijing.
Countries “knock on the door, they call,” Undersecretary of State Jose Fernandez told The Associated Press in a recent interview. “We run a consulting firm that does not have to advertise for clients, as they come.”
Led by State Department senior adviser Melanie Hart, the group reviews vulnerabilities and develops responses for countries that are cut off or fear losing trade with global powerhouse China. Since the group’s launch with Lithuania, more than a dozen countries have approached the Biden administration for assistance, Fernandez said.
The effort comes as Washington is stepping up its campaign to push back at China’s global influence and tensions grow between the rivals.
The Chinese Embassy in Washington took issue with the notion that Beijing is using economic pressure on other countries, calling it “completely unfounded.” The United States, it said, was the one bullying China economically by abusing export controls, treating Chinese companies unfairly and labeling Beijing as a perpetrator of economic coercion.
Fernandez said that is a tactic China “is using over and over. They believe that intimidation works. That’s why we got into the act. The time had come to stop this thing.”
For example, when a Norwegian committee in 2010 awarded the Nobel Peace Prize to a Chinese dissident, Beijing stopped buying salmon from the Nordic country. Two years later, China rejected banana imports from the Philippines over a territorial dispute in the South China Sea. In 2020, Beijing responded to Australia’s call for an investigation into the origin of the COVID-19 pandemic by raising tariffs on Australian barley and wines.
Then came Lithuania. In late 2021 and early 2022, Lithuanian businesses saw their cargo shipments to and from China stranded, and they were warned by major European businesses that Lithuanian-made auto parts would be barred from products for the Chinese market.
That came after Lithuania allowed Taiwan’s de-facto embassy in Vilnius to bear the name Taiwan, instead of Taipei — Taiwan’s capital city — as preferred by Beijing. China considers the self-governed island to be part of Chinese territory and protested the use of Taiwan.
Instead of caving in, the northern European country asked for help. The U.S. and its allies stepped up.
American diplomats sought new markets for Lithuanian goods. The Export-Import Bank in Washington provided Vilnius with $600 million in export credit, and the Pentagon signed a procurement agreement with the country.
And “the firm” kept at it. The State Department works as the first line of response and can coordinate with other U.S. agencies to reach “every tool that the U.S. government has,” according to a department official who asked not to be named to discuss details of the team.
While it takes years to reorient global supply chains to reduce reliance on countries such as China, the team tries to offer a quicker way to ease a crisis, the official said, comparing the team to ambulance services that “help you get past that scary emergency time.”
For example, the U.S. might try to work with partners to help a country quickly divert agricultural products to new markets, build more cold storage so products can reach farther markets or improve product quality to gain entry into more markets, the official said.
The assistance is confidential, the official said, declining to discuss the tools at the team’s disposal or name the countries that have sought help.
Shay Wester, director of Asian economic affairs at the Asia Society Policy Institute, said it was “a significant and much-needed initiative.”
“China’s growing use of economic coercion to pressure countries over political disputes is a significant challenge that requires a concerted response,” said Wester, who co-authored an April report on the issue.
The responses from other countries show that demand is high for this kind of support, Wester said.
This month, Lithuania hosted a conference on resisting economic pressure, and Foreign Minister Gabrielius Landsbergis said the aim of that action “is to crush the victims by forcing reversal and public renunciation of its policies.”
Liu Pengyu, the Chinese Embassy spokesman, said the problem with Lithuania was “a political not an economic one. They were caused by Lithuania’s acts in bad faith that hurt China’s interests, not China’s pressure on Lithuania.”
Fernandez, who attended the conference, applauded Lithuania for standing up to China. “Lithuania gave us the opportunity to prove that there were alternatives to the coercion,” he said.
veryGood! (321)
Related
- Most popular books of the week: See what topped USA TODAY's bestselling books list
- Fans without tickets enter stadium before Copa America final; people receive treatment
- RHONJ's Jennifer Aydin Addresses Ozempic Accusations With Hilarious Weight Loss Confession
- Rebuilding coastal communities after hurricanes is complex, and can change the character of a place
- The company planning a successor to Concorde makes its first supersonic test
- Schools receive third — and potentially final — round of federal funding for homeless students
- Federal judge dismisses Trump classified documents case over concerns with prosecutor’s appointment
- Mississippi coach Lane Kiffin delivers emotional tribute to father at SEC media days
- Bodycam footage shows high
- The Smile cancels European concert tour after Jonny Greenwood hospitalized for infection
Ranking
- Paula Abdul settles lawsuit with former 'So You Think You Can Dance' co
- Shannen Doherty's Charmed Costar Brian Krause Shares Insight Into Her Final Days
- Second day of jury deliberations to start in Sen. Bob Menendez’s bribery trial
- Stock market today: Asian shares are mixed as China reports its economy grew 4.7% in last quarter
- 2 killed, 3 injured in shooting at makeshift club in Houston
- Lionel Messi brought to tears after an ankle injury during Copa America final
- Powerball winning numbers for July 13 drawing: Jackpot rises to $64 million
- When does 2024 British Open start? How to watch golf's final major of season
Recommendation
A Mississippi company is sentenced for mislabeling cheap seafood as premium local fish
In beachy Galveston, locals buckle down without power after Beryl’s blow during peak tourist season
Kate Middleton and Prince William Share Heartwarming Photo of Princess Charlotte and Prince Louis
MLB draft 2024: Five takeaways from first round historically light on high school picks
California DMV apologizes for license plate that some say mocks Oct. 7 attack on Israel
Carlos Alcaraz wants a seat at the adult table after his second Wimbledon and fourth Slam trophy
Thomas Matthew Crooks appeared in a 2022 BlackRock ad
Top Florida GOP fundraiser launches GoFundMe for Trump rally shooting victims