G7 Summit Sets Tougher Stance Against China

G7 Summit Addresses China's Threat to European Security

The G7 leaders in Puglia, Italy, are set to discuss China's long-term threat to European security. This discussion follows new sanctions and tariffs imposed by the US and the EU on China-based companies and electric car makers. The US has been urging its European partners to take a more assertive stance towards China, emphasizing its support for Russia's defense-industrial complex in the ongoing conflict with Ukraine.

According to a G7 diplomat, the group's communiqué will convey a tougher stance towards China. US President Joe Biden also emphasized China's role in aiding Russia by providing weapons and technology. In response, Russian President Vladimir Putin offered a ceasefire and negotiations to end the war in Ukraine if certain conditions were met.

Bilateral trade between China and Russia surged to $240 billion last year, a 26% increase from 2022. The G7 leaders will also explore strategies to address China's industrial overcapacity, particularly in emerging green technologies.

However, there is no unanimous consensus within the G7 on how to respond to China's actions. Ursula von der Leyen, the European Commission president, has called for a "do no harm" approach when imposing countermeasures.

Key Takeaways

• G7 leaders view China's support for Russia's defense-industrial complex as a long-term threat to European security.
• The US urges European partners to adopt a more assertive approach towards China, especially in light of its assistance to Russia's war efforts.
• G7 discussions will center on countering China's industrial overcapacity, particularly in the realm of emerging green technologies.
• The EU is advocating for the "do no harm" principle when implementing countermeasures against China.
• Recent actions include the US imposing new sanctions on China-based companies supplying semiconductors to Russia and raising tariffs on Chinese green technologies.
• Chinese state media has criticized the G7 for focusing on issues related to Russia and industrial overcapacity.

Analysis

The G7's focus on China's long-term threat to European security, driven by US pressure, is likely to strain Sino-European relations. Countries like Germany, heavily reliant on Chinese trade, may resist this stronger stance. This could lead to increased tariffs, export controls, and technology disconnection between China and the West, potentially leading to a fragmented global economy. The EU's challenges in balancing commercial interests with security concerns could hasten a new Cold War between the US and China.

Did You Know?

• Industrial Overcapacity: This refers to a situation where a country or industry produces more goods than can be consumed domestically or internationally. European leaders are apprehensive that China's industrial overcapacity in emerging green technologies could flood their markets with low-priced goods, posing challenges for European companies.
• Hawkish Approach: This term is commonly used in foreign policy contexts and denotes a more aggressive or confrontational stance towards a particular country or issue. The US is urging its European partners to embrace a more assertive approach towards China regarding its support for Russia and industrial overcapacity.
• Do No Harm Principle: This principle is often invoked in international trade and emphasizes the idea that countries should refrain from actions that harm each other's economic interests. EU Commission President Ursula von der Leyen is advocating for this principle to be applied when taking countermeasures against China, aiming to avoid potential harm to European businesses and consumers.