Thursday, June 8, 2023
HomeEconomyFinance ministers' meeting ahead of G7 summit focuses on China's rising influence

Finance ministers' meeting ahead of G7 summit focuses on China's rising influence

Tetsushi Kajimoto

TOKYO (Reuters) – A weekend meeting of finance ministers from the Group of Seven (G7) advanced economies did not list China as a threat in a communiqué, but Leave signs that the world’s second-largest economy will shine at this week’s Hiroshima summit.

China’s efforts to counter its growing global influence were evident at the three-day G7 finance ministers’ meeting in Niigata, Japan, during which they held first outreach in 2009 to win support from emerging countries.

Analysts at meetings with Brazil, Comoros, India, Indonesia say Singapore and South Korea mainly address issues like debt and high levels of infrastructure investment in tacit opposition to China’s Belt and Road Initiative initiative.

The global order changes after the loss of U.S. dominance,” said Masamichi Adachi, an economist at UBS Securities. “

G7 host Japan persuaded its G7 counterparts to launch new plan*) to diversify supply chains for strategically important commodities away from China by end of year. G7 by US , UK, France, Japan, Italy, Germany and Canada.

But the finance ministers’ closing communiqué did not mention the US idea of ​​reducing restrictions on investment in China, putting pressure on Beijing On the other hand, there may be differences among the group. Niigata discussed the idea, but declined to elaborate.

China is one of the largest markets for most G7 countries, especially countries such as Japan and Germany that rely on Exporting economies. Exports to China accounted for 22% of Japan’s overall shipments.

Analysts say Japan and the U.S. hope to provide foreign direct investment through commitments and aid to enlist the support of countries, including countries in the southern hemisphere.

U.S. President Joe Biden hosted a summit of U.S.-African leaders in Washington last year with the aim of balancing China’s influence on the continent

Japan follows, with Prime Minister Fumio Kishida visiting Egypt, Ghana, Kenya and Mozambique this month.

G7 In a joint statement on Saturday, the finance ministers emphasized the urgency of addressing debt vulnerabilities in low- and middle-income countries, mentioning Zambia, Ethiopia, Ghana and Sri Lanka.

They did not mention China , but said foreign investment in critical infrastructure “could pose a risk to economic sovereignty” and therefore must not “compromise the economic sovereignty of the host country.”

Treasury Secretary Janet Yellen in March Beijing’s lending activities have left developing countries “debt-distressed,” he said, adding that Washington was working hard to counter China’s influence over international institutions and loans.

Japan’s finance ministry official said coercion was “discussed” at a meeting of G7 finance leaders.

The G7 summit will most likely hold a special meeting on China to discuss Beijing’s “economic coercion” against other countries, according to Reuters.

” said Atsushi Takeda, chief economist at Itochu Economic Research Institute. “These emerging economies will not side with the West or China, while carefully weighing what is in their best interest. ”



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