As published on hindustantimes.com, Monday 14 June, 2021.
China on Sunday pointedly cautioned the G7 leaders that the days when “small” groups of countries decided the fate of the world was long gone, hitting back at the world’s richest democracies that have sought a unified position over tackling Beijing.
“The days when global decisions were dictated by a small group of countries are long gone,” a spokesman for the Chinese embassy in London reportedly said.
“We always believe that countries, big or small, strong or weak, poor or rich, are equals, and that world affairs should be handled through consultation by all countries.”
In another development, the G7 advanced a plan to impose a global minimum corporation tax and a collective crackdown on avoidance, arguing that it would help tackle inequality.
The G7 leaders endorsed an agreement struck by their finance ministers last week to adopt a minimum floor for corporation tax of 15%.
“With this, we have taken a significant step towards creating a fairer tax system fit for the 21st century, and reversing a 40-year race to the bottom,” the G7 said in its concluding statement.
“Our collaboration will create a stronger level playing field, and it will help raise more tax revenue to support investment and it will crack down on tax avoidance.”
The proposal, which now goes to G20 nations meeting in Italy next month, is aimed at snaring more taxes from revenue-hopping multinational companies, especially tech giants. US President Joe Biden welcomed the development, saying, “Too many corporations have been engaged in what are essentially tax savings, deciding that they would pay considerably less.”