.babelrc

{
	"presets": [ "@wordpress/default" ]
}

package.json

{
    "jest": {
    "collectCoverageFrom": [
      "clients/**/*.js"
    ],
    "coverageThreshold": {
      "global": {
        "statements": 90,
        "branches": 90,
        "functions": 90,
        "lines": 90
      }
    },
    "automock": false,
    "setupFiles": [
      "./clients/tests/setupJest.js"
    ]
  }
}

setupJest.js

global.wp = {
	shortcode: {

	},
	apiRequest: {

	}
};

Object.defineProperty( global.wp, 'element', {
	get: () => require( 'React' ),
} );

webpack.config.js

// Define WordPress dependencies
const wpDependencies = [ 'components', 'element', 'blocks', 'utils', 'date' ];
// Setup externals for all WordPress dependencies
wpDependencies.forEach( wpDependency => {
    externals[ '@wordpress/' + wpDependency ] = {
        this: [ 'wp', wpDependency ]
    };
});

wp.js

import React from 'react';
Object.defineProperty( global.wp, 'element', {
    get: () => React
} );
//The rest of the code...