Author: Jack Li
At a meeting in London on June 5th, the finance ministers of the Group of Seven Western Industrial Countries unanimously agreed to sign a historic agreement, which is widely welcomed. The relationship between the United States and the Western alliance has taken another big step forward, clearing financial obstacles in order to build a closer alliance.
The British Finance Minister, Rich Sunak announced the agreement in a video posted on Twitter on Saturday, stating that the G7 finance ministers from Canada, France, Germany, Italy, Japan, the United Kingdom and the United States “reached a consensus, which is a historic agreement to reform the global tax system and adapt it to the global digital age. The most important matter is to ensure that it is fair, so that the right companies pay the right taxes in the right place.” U.S. Treasury Secretary Yellen attended the meeting, and she sought to support the government’s efforts to rewrite international tax rules and prevent U.S. companies from recording their earnings overseas.
Tech giants such as Amazon, Facebook, and Google also welcome the agreement. Nick Clegg, Facebook’s vice president of global affairs, said in a statement that he welcomes the important progress made by the Group of Seven and hopes that the international tax reform process will be successful. Google spokesperson José Castañeda said in a statement to CNN that Google strongly supports the work done to update international tax rules and hopes that countries will continue to work together to ensure that a balance and long-lasting agreement will be finalized as soon as possible. An Amazon spokesperson also called the agreement, “a welcomed step forward.”
The G7, composed of the United States, Japan, Germany, the United Kingdom, France, Italy, and Canada, has a total GDP of approximately $40 trillion, which is close to half of the global economy. Next week, the rotating presidency of the United Kingdom will host a summit of leaders of the G7 member states. The purpose of this week’s G7 Finance Ministers and the previous G7 Foreign Ministers’ Meeting is to pave the way for next week’s meeting. The agreement reached today marks a major victory for the Biden administration ahead of the Cornwall G7 leaders’ summit next week, which is a significant political capital, and has cleared the way for the G7 to build a consensus.
The agreement may help accelerate parallel tax negotiations among approximately 140 countries led by the Organization for Economic Cooperation and Development (OECD). OECD Secretary-General Matthias Koman welcomes the statement made on Saturday, calling it “a milestone step towards the global consensus needed to reform the international tax system.” He added in the statement that the decision adds “important impetus” to the upcoming parallel tax negotiations. It is foreseeable that these 140 countries will be able to get rid of the CCP’s economic, trade, and geopolitical control. Expectantly, they can return to a true globalization from the pseudo-globalization of CCP nationalization, so that all countries in the world can benefit. On the issue of confronting the CCP, these 140 countries are likely to stand on the side of the United States and Western allies. This is indeed epoch-making.
Although the Biden administration has followed the Trump administration’s policy toward the Chinese Communist Party, Trump’s single-handed approach has clearly distracted the United States, exhausted from dealing with every part of the world. The Biden administration is proficient in the game of big powers and is good at distributing benefits with allies, so that every ally can get what they want. During this half year there has been the most conferences held in Western countries. Every gathering has completed a distribution of benefits, and all those present are excited. The current U.S. government only pursues primary interests and distributes all secondary interests to its allies. In this way, the more allies gather, the more forces can be united around the world to join against the CCP. Now, with every step taken, the United States gathers more strength, and the CCP is one step closer to its demise.
Original Article Link: https://gnews.org/zh-hans/1302367/
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