G7 leaders have raised concerns about China’s support for Russia in the Ukraine war and the production of cheap goods causing “harmful overcapacity,” despite German apprehensions.
During the annual summit held in Puglia under the Italian presidency, a 36-page report by the U.S. condemned Chinese subsidies on products like solar panels and electric vehicles, attributing them to global distortions, market disruptions, and overcapacity that threaten worker resilience, industry security, and economic stability.
Specifically, U.S. officials pointed out China as a major supplier of materials used by Russia against Ukraine, expressing concern over the long-term security implications. Despite Ukrainian President Zelensky’s assurance that Chinese leaders vowed not to provide weapons to Moscow, U.S. President Joe Biden highlighted China’s arms supply to Russia.
The U.S., Japan, and the EU, along with an informal eighth partner at the G7 summit, have expressed worries over Beijing’s heavy subsidies in green energy and technology sectors flooding global markets with unfairly priced products, creating stiff competition for Western companies, especially in the green technology space.
The National Security Council spokesman, John Kirby, mentioned plans to address China’s non-market policies having detrimental global effects. China’s top official, First Vice Premier Ding Xuexiang, is set to visit Brussels to discuss EU plans for increased tariffs on Chinese-made electric cars.
In a bid for diversity at the summit, global leaders from countries like India, Turkey, UAE, Brazil, and Mauritania were invited to participate. The G7 emphasized the importance of cooperation to address collective challenges, as expressed by Italian Prime Minister and G7 President Giorgia Meloni.
Russia faced stiff consequences at the summit, including wider sanctions, loss of control over state assets, and a new 10-year US-Ukraine security pact. A proposed $50 billion loan to Ukraine funded by interest profits from Russian state assets marked the beginning of economic pressure on Russia.
The final statement from the summit demanded Russia to cease its illegal aggression in Ukraine, pay reparations for inflicted damage, and explore legal options to enforce compliance. Russia dismissed the security pact as a nominal agreement and criticized the appropriation of frozen asset proceeds.
While Zelensky addressed Indian Prime Minister Modi on revising India’s reliance on Russian oil, discussions focused on the rising oil prices set by Russia and India’s growing purchases of Russian offshore crude.
The U.S. and EU impose price restrictions on Russian crude sales to prevent Western involvement unless sold below a certain cap. India, currently the largest buyer of Russian offshore crude, has not joined this ban, prompting calls for stricter price caps and actions against transportation exceeding the imposed price limit.
Source: www.theguardian.com
