The G7 summit in Italy concluded with China being the primary focus of discussions, and an unprecedented visit from Pope Francis to discuss artificial intelligence (AI).
What Happened: Friday’s discussions were largely centered around concerns regarding China’s excessive industrial capacity, which Western governments believe is distorting local markets, and its support for Russia’s war efforts, Reuters reported on Friday.
Earlier this week, the U.S. imposed new sanctions on China-based firms supplying semiconductors to Russia, in response to Beijing’s increasingly aggressive stance against Taiwan and maritime disputes with the Philippines.
“China is not supplying weapons (to Russia) but the ability to produce those weapons and the technology available to do it, so it is in fact helping Russia,” U.S. President Joe Biden stated at the summit.
On Tuesday, the EU announced plans to impose additional duties of up to 38.1% on imported Chinese electric cars starting in July, a move that could potentially trigger retaliation from Beijing. However, there are differing views within the G7 on how to counter Chinese state subsidies, with Europe keen to avoid a full-blown trade war with Beijing.
Aside from his speech on AI, Pope Francis held several bilateral meetings, including with Biden and Turkish President Tayyip Erdogan.
Why It Matters: The G7’s focus on China’s overproduction and export controls was anticipated, as the group had previously expressed concerns about China’s overproduction supported by excessive government backing.
China had earlier dismissed allegations by the G7 finance ministers and central bankers that its non-market policies harm global economies.
Image by Fly Of Swallow Studio via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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