G7 Targets China's State-Driven Trade Tactics Without Naming It, Pledging Action Against 'Nonmarket Practices'
Finance ministers and central bankers from the G7, which includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, have pledged to tackle “excessive imbalances” in global trade practices after three days of talks in Canada.
What Happened: The G7 statement mentions "nonmarket policies and practices", which is a phrase typically used to refer to China's state subsidies and currency management strategies. According to the Guardian, the statement notably did not include past pledges on climate action and adopted a softer tone on the Ukraine war.
While the joint statement did not mention China directly, the language indicated a position against state-driven economic policies typically linked with Beijing.
The earlier G7 description of the war as an "illegal, unjustifiable, and unprovoked war of aggression" was replaced with censure of Russia's "continued brutal war." U.S. Treasury Secretary Scott Bessent said the meeting "went great."
German finance minister Lars Klingbeil advocated for a speedy resolution of trade tensions, calling U.S. tariffs "a heavy burden on the global economy," adding, "Our hand is extended."
Canada's François-Philippe Champagne said: "We found common ground on the most pressing global issues that we face… I think it sends a very clear signal to the world … that the G7 is united in purpose and in action."
He also noted that tariffs were discussed in detail: "We're trying to enhance growth and stability. And obviously tariffs are something in that context that you can't avoid discussing."
Why It Matters: Despite the communique's reference to "nonmarket practices," highlighting a coordinated move to confront China's trade playbook, US tariffs remained a point of contention. Open conflict was avoided, but the omission of this issue from the text contrasts with strong views articulated during the meeting, especially Canada's call to roll back tariffs on steel and aluminum.
The changed language on Ukraine also reflects shifting diplomatic tides. President Donald Trump has questioned U.S. support for Kyiv and implied Ukraine is also to blame for the conflict.
His position has influenced G7 rhetoric, but peace talks between Russia and Ukraine did not result in significant in-person engagement last week in Istanbul. Reports of further negotiations at the Vatican were dismissed by the Kremlin, which said new talks "have yet to be agreed."
This G7 finance summit sets the tone for the leaders' summit in June, which President Trump is expected to attend.
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