During the recent Group of Seven (G7) summit in Italy, leaders of the world's most advanced economies issued a stark warning against China, accusing it of enabling Russia's war in Ukraine. The G7 leaders emphasized that China's ongoing support for Russia's defense industrial base is allowing Moscow to sustain its illegal actions in Ukraine, with significant security implications.
The G7 called on China to halt the transfer of dual-use materials, such as weapons components, that contribute to Russia's defense sector. The leaders also threatened further sanctions against Chinese entities aiding Russia in circumventing Western embargoes.
American officials have alleged that China is assisting Russia in expanding its military manufacturing capabilities by exporting items like semiconductors, materials, and machine tools. While Beijing has denied providing weapons to either side in the conflict, the US and EU have already imposed sanctions on Chinese companies, with the US recently targeting firms supplying semiconductors to Russia.
President Joe Biden highlighted China's role in providing the technology and ability for Russia to produce weapons, labeling it as indirect support for Moscow's military efforts. The G7 also expressed concerns about China's economic policies, particularly industrial overcapacity, and vowed to address unfair practices that harm global markets.
Furthermore, the G7 criticized China's actions in the East and South China seas, condemning its use of coast guard and maritime militia in the South China Sea. The leaders voiced serious concerns over China's maneuvers against Philippine vessels and its attempts to change the status quo through force or coercion.
Both the EU and the US have taken steps to counter what they perceive as China's unfair trade practices, with the EU imposing additional tariffs on Chinese electric vehicles and the US implementing tariffs on strategic imports worth $18 billion, including EVs and clean-energy products.
The G7's joint communique underscored the need to address China's non-market policies and practices that lead to global spillovers, market distortions, and harmful overcapacity in various sectors. The summit marked a significant shift towards a tougher stance on China's role in supporting Russia and its economic policies, signaling a unified approach among major global powers.
