G7 leaders are set to warn China over its trade practices, which include “harmful overcapacity” and “market distortions,” according to a draft statement seen by POLITICO.
“We are not trying to harm China,” the leaders say in the latest G7 summit statement, but “we express our concerns about China’s persistent industrial targeting and comprehensive non-market policies and practices.”
China has been at the forefront of the G7 leaders’ concerns as tensions have increased with the U.S. and trade relations have soured with Europe. The European Commission announced this week that Chinese electric cars shipped to the EU will face duties of up to 38.1 percent starting July 4.
The G7 leaders also hardened their tone against Beijing over its support of Russia and called on China to “cease the transfer of dual-use materials, including weapons components and equipment, that are inputs for Russia’s defense sector,” according to the latest draft statement, which is set to be adopted Friday evening.
“We will continue to take measures against actors in China and third countries that materially support Russia’s war machine, including financial institutions … and other entities in China that facilitate Russia’s acquisition of items for its industrial base,” according to the statement.
On Thursday, world leaders struck a deal to use the profits of frozen Russian assets to secure a loan of “approximately $50 billion” to aid Ukraine financially. The United States has been heaping pressure on its European allies to look into ways to secure cash for Kyiv, amid fears that former President Donald Trump may return to the White House after November.