“The firm,” a team of eight at the State Department, is helping countries targeted by China deal with economic pressure. Led by senior adviser Melanie Hart, the group reviews vulnerabilities and develops responses for nations facing trade restrictions from Beijing. Since its launch with Lithuania, more than a dozen countries have approached the Biden administration for assistance in combating economic coercion from China.
As tensions between the U.S. and China rise, Washington is pushing back against Beijing’s global influence. The Chinese Embassy in Washington denies using economic pressure and accuses the U.S. of bullying China. Undersecretary of State Jose Fernandez stated that China frequently uses economic coercion as a tactic and believes that intimidation works. The U.S. has chosen to intervene to stop this practice and assist countries facing economic challenges from China.
In response to various disputes, China has applied economic pressure on countries in the past. For example, China stopped buying salmon from Norway after a Nobel Peace Prize was awarded to a Chinese dissident. Similarly, China rejected banana imports from the Philippines over territorial disputes in the South China Sea. The State Department’s proactive approach aims to support countries like Lithuania that face economic repercussions for their decisions.
The case of Lithuania illustrates the effectiveness of U.S. assistance in combating economic coercion by China. When Lithuanian businesses were affected by cargo disruptions and trade bans due to their support for Taiwan, they sought help. The U.S. and its allies stepped in, providing financial support and seeking new markets for Lithuanian goods. The State Department’s team works as the first line of response, coordinating with other U.S. agencies to provide comprehensive assistance to countries in need.
While it takes time to reorient global supply chains away from China, the State Department’s team offers immediate support to alleviate economic crises. By helping countries diversify markets, improve product quality, and navigate trade barriers, the team acts like an ambulance service during emergencies. The confidential assistance is crucial in addressing China’s economic coercion tactics and ensuring countries have viable alternatives to withstand pressure.
The demand for U.S. support against economic coercion from China is evident as more countries seek assistance. Lithuania hosted a conference on resisting economic pressure, emphasizing the need to stand up against coercion. Chinese Embassy spokesman Liu Pengyu dismissed the issue with Lithuania as a political rather than economic dispute, blaming the country’s actions for causing tensions. Despite Chinese denials, the U.S. continues to assist countries like Lithuania in standing up to economic pressure and finding alternatives to coercion.
