In the draft of their final declaration, the G7 states committed themselves to establishing “constructive and stable relations” with China. Economically, however, the countries want to make themselves more independent. China reacted sharply.
The G7 countries want to reduce their economic dependence on China. This emerges from the draft of the final declaration of the summit in Hiroshima, Japan. “We will reduce excessive dependencies in our key supply chains.” The coronavirus pandemic and Russia’s war of aggression against Ukraine have exposed vulnerabilities in the supply chains of countries around the world, the statement said. At the same time, cases of economic coercion have increased.
Do not harm China, but remember rules
G7 policy is not aimed at harming China or thwarting its economic progress. “A growing China that abides by international rules would be in the interest of the world.” The G7 countries wanted to build constructive and stable relations with China, the document said. It is important to cooperate with China on global challenges – given its role in the world community and the size of its economy.
In order to enable sustainable economic relations with China and to strengthen the international trading system, the G7 group wants to insist on fair competitive conditions for their companies and employees in China. China’s non-market-conforming policies and practices that distorted the global economy also needed to be addressed. “We will oppose harmful practices such as unlawful technology transfer or data disclosure,” it said.
economical oppose coercion
The G7 states also wanted to arm themselves against “economic coercive measures” from other states. “Attempts to use economic dependencies as a weapon” would have consequences, declared the heads of state and government of the G7. This is also a signal towards Beijing. China has repeatedly used its weight in disputes with other countries to exert economic pressure – for example on Lithuania, when the small Baltic country allowed Taiwan diplomatic representation.
In addition, it is necessary to protect certain advanced technology “that can be used to threaten our national security”. The group of states announced the establishment of a coordination platform on this topic, which should improve joint preparation, deterrence and response to such coercive measures. It is also intended to improve cooperation with partners outside the G7.
foreign investments test
The declaration also mentions the possibility of taking a closer look at one’s own foreign investments. This could be important to complement existing tools for targeted controls on foreign exports and investments, the paper says.
Roughly speaking, the considerations are about ensuring that a country’s capital does not flow on a large scale into industrial sectors of rival states that are important for the national security of their own country – for example in the defense or technology sector. The move is aimed primarily at China.
The talks between the G7 countries on China were considered difficult in the run-up to the summit due to different interests. The US has taken an aggressive stance towards Beijing on the economic front. Washington is trying, for example, to cut off the People’s Republic of deliveries of highly developed computer chips and technology for their production. However, the close economic ties with Beijing are important for many European countries such as Germany.
Beijing reacted sharply
In an unusually harsh response, China accused the G7 of slanderous attacks and “meddling in internal affairs.” “Ignoring China’s serious concerns, the G7 group insists on manipulating China-related affairs, slandering and attacking China, and grossly interfering in China’s internal affairs,” a Chinese foreign ministry spokesman said in Beijing.
The G7 is a small group that serves the “self-serving interests” of the United States. She sings the song of a peaceful world, but “suppresses the development of other countries” and affects peace and regional stability. China has expressed strong dissatisfaction and has protested to G7 host Japan and the countries concerned.
China: Peace in Taiwan, pressure on Russia
The spokesman also reiterated that China regards Taiwan as part of the People’s Republic. The solution to the Taiwan question is solely a matter for the Chinese people. Hong Kong, Xinjiang and Tibet or human rights are also “internal affairs” of China.
The G7 had previously expressed concern about a possible escalation of the conflict over Taiwan – the group warned of “militarization activities” in the Asia-Pacific region. In their summit statement, the G7 “reaffirmed the importance of peace and stability in the Taiwan Strait for the security and prosperity of the international community.”
In its statement, the international community also called on China to put pressure on Russia to immediately end its military aggression in Ukraine and withdraw its troops. China has increased its ties with Russia since the Russian invasion of Ukraine. Beijing sees itself as a neutral actor and mediator between Russia and Ukraine.