Oil tankers, cars, and money: the political economy of G7 China policies in World Economy News 24/04/2026 Trade deals by public opinion In response to growing uncertainty about US leadership of the liberal democratic order, leaders across the Global North are calling for closer engagement with China. Carney, Starmer, and Merz have all emphasised strategic pragmatism during their visits. While expressing openness to Chinese clean-tech investment, each leader highlighted different trade priorities. Canada focused on exports of agricultural goods, the UK on financial and professional services, Germany on manufacturing products. This broadly mirrors public opinion. Recent polls suggest that growing shares of the population in these three countries see China as more technologically advanced and reliable than the US. Citizens also see reducing dependence on China as less feasible than reducing dependence on the US. This does not, however, amount to wholesale reassessment of Beijing’s policies. Views of China’s leadership remain predominantly negative, although the recent uptick in positive views is notable; the first major improvement since historic lows during Covid-19. Picking favourites within free markets The UK, Germany, and Canada are all mixed (either liberal or coordinated) market economies that produce more than they consume. Their sectoral strengths, however, differ. In GDP terms, Canada relies significantly on energy and raw materials, Germany on manufacturing, the UK on services. All three have expanding green-tech sectors. This distinguishes them from the US, whose unique position as a major global producer and consumer of fossil fuels gives it greater scope to pursue a more self-sufficient (in Trump’s case, petrostate-oriented) model. This means the US could significantly reduce its dependence on Chinese clean-tech supply chains. The UK, Germany, and Canada are neither capable nor willing to decouple from China; hence their respective approaches to de-risking. The US could reduce its dependence on Chinese clean-tech supply chains but the UK, Germany, and Canada are neither capable nor willing to decouple from China For these three countries, engagement makes sense, but only as a tool rather than a new paradigm. This distinction matters. The chief architect of the Washington Consensus has abandoned the neoliberal paradigm. Yet mercantilism is inherent to China’s state-led economic model, including its long-term goal of self-reliance, captured in the Dual Circulation Strategy. Moreover, China remains an illiberal party-state that pursues bilateral multilateralism in its global engagements. All this sits uneasily alongside the countries’ preference for open markets and multilateral rules, though selective adoption of elements of the Beijing Consensus – especially its focus on industrial policy – is increasingly encouraged. The devil’s in the detail The agreements signed during the visits reflect Western preferences for free trade and each country’s sectoral strengths. This creates distinct opportunities and challenges vis-à-vis Beijing. A major outcome of Carney’s trip was the reduction in Chinese tariffs on Canadian canola seed and other agri-food exports. In return, Canada eased restrictions on Chinese electric vehicles (EVs), replacing a 100% tariff regime introduced in 2024 (in coordination with the US) with a quota system allowing for annual imports of 49,000 vehicles under a most-favoured-nation tariff rate. This contrasts wi