G7 leaders on Tuesday condemned China’s “opaque and market-distorting” international trade practices in a final statement that the United States described as “unprecedented.”
The statement, which also vowed to reduce “strategic dependencies” on China, came hours before leaders joined a larger group of their counterparts at a NATO summit in Madrid.
There, the 30-strong coalition was also prepared to tighten its stance on Beijing in an update of its “strategic concept.”
The United States has long cast a wary eye on China for its trade practices, which Washington says aim to give Chinese companies an unfair advantage over foreign firms.
Russia’s invasion of Ukraine and Beijing’s refusal to distance itself from Vladimir Putin have prompted other countries, including export giant Germany, to reconsider their economic dependence on the Asian giant as well.
Beijing’s increasingly strident claims to much of the South China Sea have also raised alarm about its military ambitions.
In their final statement after a three-day summit in the Bavarian Alps, the G7 leaders signaled that they would seek to break away from economic dependence on China.
They pledged to “promote diversification and resilience to economic duress and reduce strategic dependencies.”
A US official called the collective statement “unprecedented in the G7 context” in which it “acknowledges the damage caused by China’s opaque, market-distorting industry policies.”
Leaders also expressed concern about human rights abuses in China and urged Beijing to respect fundamental freedoms.
They stressed that the situation in Tibet and Xinjiang, where there is “forced labor”, “worries us greatly”.
The statement also called on China to honor “its commitments” under the Sino-British joint declaration, in which Beijing agreed that Hong Kong could keep some freedoms and autonomy for 50 years under a “one country, two systems” model.
She urged Beijing to persuade Russia to withdraw from Ukraine.
– “Serious Danger” –
Federal Chancellor and summit host Olaf Scholz underscored the “ambivalence” in the West’s relationship with China.
But he said in an interview with the daily newspaper Welt that it is now “very clear that we need to diversify our supply chains and exports”.
That also means “to have an eye on the entire Asian region, because many countries have risen, not just China”.
After several years of detente and cooperation as China caught up economically with the West, Beijing has adopted a more assertive tone on the world stage.
Western allies recognize that the world’s biggest challenges, including climate change, cannot be solved without Beijing’s cooperation, but have become more cautious about China’s actions and targets.
In recent years, the export giant has offered billions in investments and loans to build roads, rails and bridges in poorer countries around the world.
While initially greeted enthusiastically, some recipient countries have later found themselves trapped in debt.
Scholz recently warned that China’s years of lending to poorer countries, particularly Africa, posed a “serious threat” that could plunge the world into the next financial crisis.
Critics also accused Beijing of buying influence in the south.
To provide an alternative for the world’s poorest, the G7 on Sunday pledged $600 billion for global infrastructure programs.
European Commission President Ursula von der Leyen said the huge program shows partners in developing countries “that they have a choice”.
Beyond economic aid, Western allies are also ready, for the first time, to align their military strategy to address the challenges posed by China when they meet in Madrid for a NATO summit.
The update to the “strategic concept” is the alliance’s first in ten years.
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