Article content

(Bloomberg) — Group of Seven leaders said they wanted “constructive and stable” relations with China even as they pushed ahead with steps to reduce dependence on Beijing for critical supply chains, according to a copy of the final communique seen by Bloomberg News. 

The leaders emphasized that they were “not decoupling or turning inwards,” saying “economic resilience requires de-risking and diversifying,” according to the statement. It said they would “push for a level playing field for our workers and companies” while fighting economic coercion and “protecting certain advanced technologies that could be used to threaten our national security without unduly limiting trade and investment.” 

Article content

Article content

“Our policy approaches are not designed to harm China nor do we seek to thwart China’s economic progress and development,” said the communique, which is set to be released at the G-7 summit being held through Sunday in Hiroshima, Japan. “A growing China that plays by international rules would be of global interest.”

Chinese President Xi Jinping in March accused the US of “comprehensive containment and suppression” of the world’s second-biggest economy, after the Biden administration began using export controls to deny Beijing access to advanced semiconductors and other technology. At the same time, China has stepped up outreach to emerging economies in the Global South while ignoring US President Joe Biden’s efforts to hold a phone call with Xi. 

Article content

The G-7 leaders also referenced Xi’s push to lead a dialogue to end Russian leader Vladimir Putin’s war in Ukraine, saying Beijing should “support a comprehensive, just and lasting peace based on territorial integrity and the principles and purposes of the UN Charter, including through its direct dialogue with Ukraine.”

Other highlights in the communique include: 

Russia

G-7 leaders pledged to support Ukraine “for as long as it takes” while committing “to intensifying our diplomatic, financial, humanitarian and military support for Ukraine, to increasing the costs to Russia and those supporting its war efforts, and to continuing to counter the negative impacts of the war on the rest of the world, particularly on the most vulnerable people.”

Article content

Article content

G-7 to Chase Russia’s Diamonds While Stopping Short of Total Ban

Global Economy

Leaders said they need to “stay agile and flexible” with macroeconomic policy given “heightened uncertainty” about the global economic outlook. 

“Inflation remains elevated and central banks remain strongly committed to achieving price stability, in line with their respective mandates,” the communique said. It added that fiscal policy should provide “appropriate, temporary and targeted support” to vulnerable groups while also catalyzing investments in green and digital transformations. 

They also confirmed their intention to coordinate their approaches to economic security based on the notion of “de-risking” rather than de-coupling. “To this end, we will engage in dialogue and follow a cooperative approach within the G-7 as well as with partners beyond the G-7 and globally, including in collaboration with developing countries,” the statement said.

Article content

Financial Stability

G-7 leaders said they are ready to take “appropriate actions” to maintain financial stability. Noting that the financial system is “resilient,” leaders said effective oversight is critical to addressing risks posed by “crypto-asset activities and markets.” 

Energy

The leaders reaffirmed their commitments to the Paris climate accords and cutting emissions by 2050 but also acknowledged that “publicly supported investment” in gas can be appropriate as a temporary measure if consistent with those objectives, given the energy crisis caused by the war in Ukraine and the rapid phasing out of dependencies on Russian supplies.

The issue, which was the final section of the communique to be settled according to officials familiar with the discussions, echoes similar wording agreed by the G-7 in Germany last year. Some nations and climate groups had hoped that the clause would have been a one-off.

Article content

Trade

On trade related matters, the G-7 highlighted the importance of critical minerals. Several G-7 nations and the European Union have been working to conclude dedicated agreements in order to secure their supply chains. 

The draft statement says the G-7 supports “open, fair, transparent, secure, diverse, sustainable, traceable, rules- and market-based trade in critical minerals, oppose market-distorting practices and monopolistic policies on critical minerals, and reaffirm the need to build resilient, robust, responsible, and transparent critical mineral supply chains.”

The Tussle With China for Global Influence Is About to Heat Up

Food Security

The leaders pledged to continue providing assistance relating to food security, having exceeded last year’s joint $14 billion commitment. The issue will be high on the agenda when the G-7 leaders meet with the summit’s invited guests over the weekend.

Article content

The G-7 will also call on Russia to lift any measures that may hinder the export of grain and fertilizers. “Given Ukraine’s essential role as a major exporter of food to the world, we are seriously concerned about the current and future impact of Russia’s deliberate disruption of Ukraine’s agricultural sector on food security in the most vulnerable countries,” the draft says.

AI

Leaders said they need to “immediately take stock of the opportunities and challenges of generative AI,” and called for ministers to start discussions on the topic by the end of the year. Topics would include governance, the safeguarding of intellectual property rights and responding to foreign information manipulation, including disinformation. 

Article content

G-7 Leaders Agree to Set Up ‘Hiroshima Process’ to Govern AI

African Union, Central Asia

The communique confirmed that G-7 leaders would like to see a greater role for the African Union in the Group of 20. Italy’s Prime Minister Giorgia Meloni is among the G-7 leaders who during summit discussions on Saturday called for others to back the Union’s request to join the G-20, an official said.

The draft statement also sets out an intent to deepen engagement with Central Asian countries. “We are determined to foster trade and energy links, sustainable connectivity and transportation, including the ‘Middle Corridor’ and associated projects to enhance regional prosperity and resilience,” it said, a day after Xi held a competing summit with leaders from the region.

Article content

Kazakhstan is among the so-called middle ground nations the G-7 is keen to deepen relations with, Bloomberg previously reported.

North Korea

The G-7 called on North Korea to refrain from testing a nuclear device and further launches of ballistic missiles, saying Pyongyang should respond to offers from the US, Japan and South Korea to return to long-stalled talks.

Leader Kim Jong Un has ramped up regional tensions to levels not seen in years by firing off a record number of ballistic missiles in 2022 and rolling out new weapons systems designed to deliver a nuclear strike on the US mainland and America’s allies in Asia.

Gender, LGBTQ

The statement referred to the need to achieve a society where “all people can enjoy vibrant lives free from violence and discrimination independent of gender identity or expression or sexual orientation.” 

Japan is the only G-7 country not to recognize same-sex unions and had come under pressure from fellow members to make progress on legal rights for sexual minorities, but its conservatives have balked at a ban on discrimination.

—With assistance from Shoko Oda, Jon Herskovitz and Isabel Reynolds.