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G7 leaders are seeking to toughen their stance against Chinese economic policies, which they say contribute to global trade imbalances, but also believe Chinese support for Russia’s defence industrial complex poses a “long-term threat” to European security.
The United States has long urged its European G7 partners — France, Germany, Italy and the EU — to move closer to a tougher stance on China, arguing that China’s role in propping up President Vladimir Putin’s regime’s war against Ukraine means it has chosen to side with Russia against the West.
G7 leaders are due to discuss China on Friday, the second and final day of their summit in the southern Italian region of Puglia, just days after the EU announced new tariffs on Chinese electric-car makers it says benefit from unfair subsidies and the United States imposed new sanctions on Chinese companies that supply semiconductors to Russia that could strengthen Russia’s military.
“The approach towards China is tougher than before. Europe is definitely moving in that direction,” said one G7 diplomat who took part in the talks, adding that the group’s statement at the summit will reflect that changed assessment. “The days of ignorance towards Beijing are definitely over. Frankly, the responsibility for that lies with China.”
U.S. President Joe Biden said on Thursday that “China is not supplying weapons, it is providing the capabilities and technology to build them, so in effect, China is assisting Russia.”
A senior Biden administration official told reporters on Friday that Chinese support for Russia’s “defense industrial base” is a “serious issue” not only because of its influence in Ukraine but also because it would help Russia develop capabilities in areas such as missiles and artillery. “This poses a long-term threat to European security and is a concern for all members of the G7,” the official added.
Bilateral trade between China and Russia was $240 billion last year, up 26% from 2022, according to Chinese customs.
G7 leaders are also expected to discuss ways to counter China’s industrial overcapacity, which European leaders in particular fear could be used to saturate markets with low-cost products, especially emerging green technologies.
U.S. officials have sharply stepped up warnings about China’s clean energy exports, and Washington recently raised tariffs on Chinese products in the sector sold to the United States.
“China’s subsidies for electric vehicles, lithium-ion batteries, solar panels and more contribute to overcapacity in nearly every Western market,” the Biden administration official said.
“That will be reflected in the statement and any subsequent actions will be taken by the G7 countries individually,” the official added.
Chinese state media condemned the summit, and the official Xinhua news agency reported that it began amid protests in the city of Brindisi, 60 kilometers (37 miles) from the venue, over Israel and Hamas’ war in Gaza and environmental issues.
The state-run nationalist tabloid Global Times tried to portray the US as manipulating its European G7 allies into taking action against Russia and antagonizing China over issues such as the war in Ukraine and over-industrialization.
But the Global Times reported that some European countries have close commercial ties with China and are eager to avoid a trade war.
“Amid internal conflicts and inconsistent policies, G7 countries are already struggling to find their own direction, let alone set the ‘rules’ for the world,” the report said.
Additional reporting by Joe Leahy in Beijing
