The G-7 closes ranks to meet the challenge of China's rise

G7 leaders during a visit to Miyajima Island.JACQUES WITT (AFP)

The member countries of the G-7, the group that brings together the most industrialized democracies in the world, seek at the summit held in the Japanese city of Hiroshima this weekend to bring positions closer to face the Chinese rise in a coordinated manner. In this key, they outline coordination mechanisms between them to have an exact picture of the investments that flow to the Asian giant, according to a European source. The idea is to achieve better control of the business picture to, if necessary, curb investments in specific areas that can allow China to gain significant advantages in security and defense, the source said.

This is one of the many elements of the problematic relationship with China that the G7 partners - the United States, Japan, Germany, the United Kingdom, France, Italy and Canada (to which the EU representation is added) - address at this summit with three basic objectives: reduce the risks of excessive dependence on manufacturing capacity, refinement and even, in some sectors, Chinese technology; prevent Beijing from advancing on its security and defense path with Western technology; and dissuade the Chinese giant from maneuvers of unilateral rupture of the international order, especially with Taiwan put in the spotlight.

In this context, the G-7 countries are not only studying controls for investment flows, but also for exports in strategic areas, and also contemplate targeting and sanctions against Chinese companies that carry out practices considered shady, for example in relation to Russia and promoting coordination to increase the resilience of their supply chains.

Members agree that they see disturbing elements in Beijing's rise, because of the increasingly repressive features at home and assertive features abroad. They also understand that a strengthening of cooperation between them can be beneficial to deal more effectively with practices of the Asian giant that they consider unacceptable. The idea is to coordinate, to send a unified message, to cooperate as much as possible, although the partners will then outline concrete policies on their own. Jake Sullivan, the U.S. national security adviser, said the final communique will underscore that each country has its own policy, but that the group is aligned and coordinated around a number of common elements.

Each has approaches with different nuances. For months, the diplomatic dynamic saw a movement according to which Washington accelerated in hardening the position towards China, using a rhetoric of decoupling, and seeking to drag European and Asian allies and partners on that path. In recent weeks, two major speeches — one by Treasury Secretary Janet Yellen and one by Sullivan, national security adviser — have signaled a shift toward a more moderate position.

The European sources consulted noted with satisfaction that Washington's current position is much more in line with the policy outlined by the EU for months, and that it speaks of reducing risks, not of decoupling from China. The final communique is expected to stress that the partners continue to believe in the need to maintain a "stable and constructive" relationship with Beijing, cooperating in areas such as climate change, global macroeconomic stability or health challenges.

But it is clear that the spiral of tension is advancing. Washington's moves to restrict China's access to high-end microchips, on the grounds that it does not want to facilitate repressive activities or military development with U.S. technology, have sparked an angry response from Beijing, including pressure on U.S. companies, with sanctions or investigations.

The EU also seeks an internal balance in all this. Some of its partners, closer to the United States, are willing to move decisively on the path of firm action. Others advocate pragmatism and prudence, with Germany and France as great representatives of this current. Berlin has huge interests in the trade relationship with China. Paris is wary in geopolitical terms of seeing Europe dragged into a spiral between Washington and Beijing that may spiral out of control.

The Chinese issue is expected to be thoroughly addressed today in a session devoted to the concept of economic security.

War in Ukraine

On other issues, the G-7 continues to keep its focus on the Ukrainian war. The Seven, and the invited countries - India, Brazil, Indonesia, Vietnam, Australia, South Korea, and the rotating representatives of the African Union (Comoros) and the Pacific Islands Forum (Cook Islands) are preparing for the arrival of the President of Ukraine, Volodímir Zelenski, who will participate in two sessions on Sunday.

The visit was not publicly announced, but the Japanese presidency gave advance notice to G-7 members and guests. It remains to be seen how the big non-aligned – India, Brazil or Indonesia – will accommodate this particular diplomatic circumstance.

On the first day of the summit, the partners pushed for new sanctions and restrictive measures to choke the Russian economy, including steps to hit the diamond sector. In addition, President Biden expressed his endorsement of launching a system of training Ukrainian pilots to operate F-16 fighter jets. This is not a green light for delivery, but it is a significant step.

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