G7 leaders condemn China's market-distorting trade practices

G 7 leaders on Tuesday condemned China's non-transparent and market-distorting international trade practices in an end-of- summit statement billed as unprecedented by the United States.

The statement, which pledged to reduce strategic dependencies on China, came hours before the leaders joined a larger group of counterparts at a NATO summit in Madrid.

The 30 member alliance was poised to strengthen its stance against Beijing in an update of its strategic concept The United States has long cast a wary eye at China over its trade practices, which Washington believes are designed to give an unfair advantage to Chinese companies over foreign firms.

Russia's invasion of Ukraine and Beijing's refusal to distance itself from Vladimir Putin has prompted other countries to reconsider their reliance on the Asian giant, including export giant Germany.

Beijing has been worried about its military ambitions due to its increasingly strident claims over much of the South China Sea.

In their closing statement after a three-day summit in the Bavarian Alps, the G 7 leaders indicated that they would try to extricate themselves from economic dependence on China.

They pledged to promote diversification and resilience to economic coercion, and to reduce strategic dependencies. A US official said that the collective statement was unprecedented in the context of the G 7 in acknowledging the harms caused by China's non-transparent, market distorting industrial directives.

They stressed that the situation in Tibet and in Xinjiang, where forced labour is a major concern for us, and that they urged China to honour its commitments under the Sino-British Joint Declaration, in which Beijing agreed that Hong Kong could keep some freedoms and autonomy for 50 years under a One Country, Two Systems model.

It pressed Beijing to get Russia to withdraw from Ukraine.

The ambivalence in the West's relationship with China was underlined by German Chancellor and summit host Olaf Scholz.

He said in an interview with Welt daily that it was now clear that we need to diversify our supply chains and exports. It is now clear that we need to look at the whole Asian zone because many countries have risen, not just China. After several years of detente and cooperation with the West, Beijing has taken a more assertive tone on the world stage.

Western allies recognize that the world's biggest challenges, including climate change, cannot be solved without Beijing's cooperation, but they have become more cautious about China's actions and aims.

Over the past few years, the export powerhouse has offered billions in investments and loans to build roads, rail and bridges in poorer countries around the world.

Some receiving countries have found themselves stranded in debt, despite being welcomed enthusiastically in the beginning.

Scholz warned that China's years-long lending spree in poorer countries, particularly in Africa, poses a serious danger that could plunge the world into the next financial crisis.

Critics accuse Beijing of trying to buy influence in the south.

In order to provide an alternative to the poorest of the world, the G 7 pledged $600 billion for global infrastructure programmes.

The European Commission President Ursula von der Leyen said that the huge programme showed partners in the developing world that they have a choice Beyond economic aid, Western allies are poised for the first time to pivot their military strategy to address the challenges posed by China as they gather in Madrid for a NATO summit.