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How G7 nations plan to counter China and ‘global economic imbalances’
While not naming China explicitly, the G7 nations have vowed to work “united” to counter global economic balances.
Top finance officials of the G7 nations have highlighted a major global “economic imbalance” and have vowed to work towards improving this together. Expressing their unity as the world's wealthiest nations, the G7 nations have agreed to work their way to counter China's trade practices.
After the meetings led by Canadian finance minister Francois-Philippe Champagne, the G7 nations issued their final communique which sends a “clear signal to the world that the G& is united in purpose and in action.”
In this document, officials from the US, Canada, the UK, Japan, Germany, France and Italy stated they would monitor "nonmarket policies and practices" in order to counter global imbalances. While their statement does not explicitly mention China, Beijing's state subsidies and export-driven economic model are usually targeted by the group of seven.
How does G7 plan to counter China?
In its memo, the G7 finance leaders stated that the members agreed "on the importance of a level playing field and taking a broadly coordinated approach to address the harm caused by those who do not abide by the same rules and lack transparency."
The members also added that the increase low-value international "de minimis" packages, which are often used to smuggle drugs and other illicit goods. As per a Reuters report, this duty-free de minimis exemption for packages valued below $800 has often been exploited by Chinese e-commerce companies such as Shein and Temu.
An official comment from China or the Chinese embassy in Ottawa, which was the site of the G7 meeting, is awaited.
Trump's Tariffs in the shadows of meeting
The tariffs imposed by US President Donald Trump did not find a mention in the final communique issued by the finance ministers. Furthermore, Canada's Champagne downplayed the lack of mention of tariffs but stated that they will not "skate around" the issue.
"We're trying to enhance growth and stability. And obviously tariffs are something in that context that you can't avoid discussing," the Canadian minister told reporters at a press conference.
More sanctions for Russia
In the meeting, which focused on countering the global economic imbalance, the G7 nations also condemned Russia's brutal war on Ukraine and vowed to ramp up sanctions if the two nations did not agree to a ceasefire.
The statement of the Ukraine war for this communique has been comparatively watered down from last year's. This is due to Trump's re-election and his moves to reduce US support for Ukraine in the ongoing war.
This year's statement refers to the war as a "continued brutal war". Whereas, in 2024, the war was referred to as an "illegal, unjustifiable, and unprovoked war of aggression against Ukraine."
The G7 leaders summit is set to be held from June 15 to 17, 2025. The location for this year's G7 summit is Alberta, Canada.
