By Andrea Shalal

NIIGATA, JAPAN (Reuters) – U.S. Treasury Secretary Janet Yellen said on Thursday that many G7 members shared U.S. fears about the “economic coercion” China is using against other countries and were considering how to fight against this position.

Yellen told a news conference that Washington has also long considered the possibility of imposing additional, narrowly targeted restrictions on foreign investment in China, and has discussed that prospect with G7 allies.

She said the US government has been discussing this possibility internally for some time, but has not defined its approach. The Biden administration is committed to discussing the issue with partners and allies and believes that coordinated action by like-minded countries is most effective and helpful.

China will be the focus of G7 financial leaders when they meet in the Japanese city of Niigata this week, with current G7 chair Japan leading new efforts to diversify supply chains and reduce its strong dependence on China, the world’s second largest economy and the second largest foreign holder of US debt.

U.S. lawmakers have pressured the administration to step up oversight of investments by U.S. companies and individuals in other countries, particularly China, citing concerns about national security and blockchain issues. supply, and calling on President Joe Biden to issue an executive order.

“We have discussed with our G7 peers, and I hope we will continue these meetings, at least informally,” Yellen said when asked about the expected decree.

She said any US action would be “narrow in scope and target technologies where there are clear national security implications,” without giving a timeline for action.

Yellen said the G7 – which includes the United States, Japan, Germany, the United Kingdom, France, Italy and Canada, as well as the European Union – will also continue to work to mitigate the geostrategic risks and fight economic coercion, citing a speech last month. , in which she said Washington would retaliate against Chinese actions aimed at dominating foreign competitors.

(By Andrea Shalal)