G7 leaders pledge action against China's unfair trade practices and Russia's arms supply

On the final day of their annual summit, Group of Seven (G7) leaders pledged to tackle what they described as China’s unfair trade practices that are hurting their economies, according to a draft statement released on the last day of their annual summit. .

The summit, held in Italy, also warned of measures against Chinese financial institutions that allegedly helped Russia procure weapons in the ongoing conflict with Ukraine.

G7 leaders, representing Italy, the United States, Britain, Canada, France, Germany and Japan, discussed their concerns about China’s excess industrial capacity, which they say them, distorts the local markets of Western countries. The draft declaration emphasizes that the G7’s actions are not intended to harm China or thwart its economic development, but that they will “continue to take steps to protect our businesses from unfair practices, to level the playing field and remedy ongoing damage.”

The United States this week imposed new sanctions on Chinese companies involved in supplying semiconductors to Russia, citing concerns over Beijing’s increasingly aggressive stance toward Taiwan and disputes with Philippines regarding rival maritime claims.

“China is not providing weapons (to Russia), but the capacity to produce these weapons and the technology available to do so, so it is actually helping Russia,” US President Joe Biden said at the summit, following the signing of a bilateral security agreement with Russia. Ukrainian President Volodymyr Zelenskiy.

Earlier in the summit, G7 countries reached an agreement to provide Ukraine with $50 billion in loans guaranteed by interest on frozen Russian assets, in what they hailed as a significant demonstration of Western determination.

The draft declaration also includes sanctions against entities helping Russia evade sanctions on its oil exports through fraudulent transportation methods.

Melissa Enoch