On June 14, the Group of Seven (G7) summit issued a joint communique that differed from previous ones by including discussions on China. This communique not only introduced several new measures targeting the Chinese Communist Party (CCP) but also adopted a harsher tone compared to previous statements.
At this summit, G7 pledged to combat China’s overcapacity in industrial production and expand measures against entities supporting Russia’s defense industry, reaching a consensus on these issues.
Regarding China’s industrial overcapacity, G7 vowed to take action against “unfair practices” to “create a level playing field and remedy ongoing harm.”
The communique directly implicated China (CCP) in the Ukraine conflict, stating, “We will continue to take actions under our legal systems to combat actors in China (CCP) and third countries providing material support to the Russian war machine, including financial institutions, and other Chinese entities aiding Russia in acquiring defense industrial base items.”
G7 also threatened further actions, including sanctions and penalties against Chinese entities assisting Russia in circumventing Western sanctions, promising to implement “restrictive measures to prevent abuse and limit access to our financial systems.”
This G7 statement included mentions of malicious cyber activities and the issue of Hong Kong. The East China Sea, South China Sea, Tibet, and Xinjiang remain focal points for G7, with the language being particularly strong on the South China Sea issue, including phrases like “repeatedly impeding freedom of navigation for all nations in international waters.”
The G7 communique reflects a change in the West’s perception of the CCP. This year’s G7 communique mentioned China 28 times, mostly depicting Beijing in a negative light and equating its threats with those of Russia, no longer considering it a “cooperative partner.”
According to the Financial Times (FT), this is the strongest stance G7 has taken against China since the Russian invasion of Ukraine, highlighting increasing frustration in the US and Europe over Beijing’s support for Moscow. An informed source indicated that G7 no longer harbors illusions about dissuading Beijing from supporting Russia.
Politico believes that these significant shifts within G7 are mainly due to the increasingly hardline stance of the United States towards China. The Biden administration is more willing to take targeted actions against the CCP in collaboration with allies and partners.
Regarding the tough language used by G7, Assistant Professor Zheng Qinmo from Tamkang University’s Department of Diplomacy told Epoch Times that this is mainly because from last year’s G7 summit in Hiroshima to this year’s summit, the CCP’s global threats have continued to escalate in just one year.
Zheng explained that apart from escalating verbal threats in the Taiwan Strait, the CCP has become more aggressive in the South China Sea, particularly with recent regulations enabling detention of foreign individuals without trial. Moreover, concrete evidence of China’s support for Russia has been uncovered by US intelligence agencies, revealing China’s increasingly unmasked assistance to Russia. With bilateral trade between China and Russia intensifying, Russia’s GDP has seen over 3% growth during the war period.
He emphasized, “The West has actually wasted two years. During this period, the West has somewhat unrealistically emphasized that China cannot provide lethal weapons. However, China has indirectly provided substantial support to Russia, leading to disappointment in the hoped-for Ukrainian counteroffensive last summer.”
Zheng stated, “If this G7 can unite, not only will there soon be results in the Russia-Ukraine conflict, but there will also be a very effective blow to China’s global ambitions.”
Professor Ye Yaoyuan from the University of St. Thomas International Studies noted that European countries have grown increasingly weary of China’s substantial covert support for Russia in perpetuating the Russia-Ukraine conflict. Secondly, the intensifying power rivalry between the United States and China is driving European countries to align more closely with the American stance.
Ye pointed out three reasons for G7’s tough stance: first, China’s increasing threat to the security of other countries, whether in the East China Sea, Taiwan Strait, or the South China Sea; second, if China becomes a so-called global power, will its world order and values be accepted by other countries? Third, the role China plays in the Russia-Ukraine conflict or in Afghanistan clashes with the stance of Western countries, making the conflict between the two sides more apparent.
The G7 communique strongly affirms taking robust actions against those aiding Russia in evading sanctions, including imposing severe penalties on entities that continue to provide material support for Russian aggression and enhancing law enforcement.
Currently, to maintain trade with Europe and the US, most Chinese banks have terminated their business with Russia, and Chinese authorities have not complied with Putin’s request made in May for Chinese banks to expand activities in Russia.
Analyzers suggest that China will continue to support Russia but may opt to work through small banks or underground financing channels that are harder to trace and less affected by the international financial system.
In response to the G7 communique, the Chinese Foreign Ministry stated that the summit communique “politicizes and weaponizes economic and trade relations” and “slanders and attacks China,” being “full of arrogance, prejudice, and lies.”
Ye Yaoyuan expressed that while sanctions against China are not ideal, the Communist Party is using sanctions as a weapon. He stated, “The Communist Party regime’s attitude is that any foreign interference is considered Western imperialism encroaching on China, oppressing the Chinese people, and suppressing China’s rise, approaching sanctions with a hostile attitude.”
He added, “Under the leadership of Xi Jinping, the Communist Party has turned the situation as if the Western world led by the US is forcing it onto the Liangshan Mountain. In fact, no one is forcing it; it’s running up there by itself.”
However, international sanctions will impact the economy and people’s livelihoods. Ye noted that, “Now the cracks in people’s livelihoods and the economy will slowly emerge, amplifying China’s economic problems and potentially accumulating discontent with the Chinese government.”
Zheng Qinmo pointed out that one should not expect the CCP to adhere to agreements or international treaties as it has never complied since its founding. The CCP even views Western countries’ adherence to treaties as foolish behavior. Its approach is to be evasive, circumvent, and say one thing and do another.
He concluded, “G7 has accumulated a lot of understanding of the CCP from the past and knows that the CCP only believes in strength. All compromises and negotiations are useless, which is why they are so tough. However, the G7 communique is just a statement; it remains to be seen whether concrete measures will be implemented.”
Regarding the firm stance taken by G7 this time, what impact will it have on future relations between the CCP and the West?
Zheng stated that the future relationship between the CCP and the West is likely to deteriorate further, with little chance of improvement. Their strategic goals are diametrically opposed, suggesting a new cold war scenario is likely to unfold. Western democratic countries will establish their own democratic supply chains, while the CCP has long been preparing its own “internal circulation,” strengthening ties with axis of evil countries or even terrorist states, increasingly isolating itself from the international system dominated by Western countries.
Ye Yaoyuan stated that it is essentially the beginning of a cold war now, with relations between the CCP and the US deadlocked and little to be said. However, European countries have not fully aligned themselves yet. For instance, China imposes a direct 100% tariff increase on the US in retaliation for tariffs on Chinese electric vehicles, while Europe’s maximum increase is only 38%. As the Russia-Ukraine conflict remains unresolved, the antipathy towards China (CCP) will likely grow higher. Currently, coexistence is possible, but if more events unfold, it may resemble the Cold War era, where the world becomes increasingly divided.