A Group of Seven attempt to set minimum global tax rates for large corporations presents a rare opportunity to meet U.S. and Chinese goals. However, Beijing’s support for the proposal is not won in advance.

The proposals are expected to be on the agenda next month at a ministerial meeting of the Group of 20, a consensus organization that includes China. Under the proposals, countries would agree to adjust their regulations to tax larger companies based on where they operate and set new thresholds, including a minimum tax rate of 15%.

The deal appears to have few direct implications for China’s tax system, which already charges rates above proposed thresholds and has strengthened enforcement of tax rules in the country. Changes in global tax policy could have a bigger effect in Hong Kong, a financial center that benefits from low tax rates, as well as the gambling enclave Macau, two Chinese territories.

The deal, promoted by the Biden administration, comes as Beijing has its own priority list with Washington, starting with the removal of trade tariffs imposed during Donald Trump’s presidency. But while Beijing may take the opportunity to ask for a US concession in return for its support, China has historically backed international tax initiatives and is unlikely to block a measure that already enjoys the backing of other major economies. .

The G-7’s tax proposal would have more weight if it won broad support within the G-20, where China is a strong voice along with Russia, India and Brazil.