TOKYO - During the G7 summit held in Hiroshima, the leaders of the Group of Seven (G7) nations, including U.S. President Joe Biden, adopted an approach of "de-risking" rather than "decoupling" from China. This strategy reflects the concerns of European and Japanese officials about the potential consequences of exerting excessive pressure on Beijing.
The G7 leaders expressed their concerns about China's "economic coercion" and discussed plans to reduce their reliance on the Chinese economy in various sectors, including chips and minerals.
Prior to the Hiroshima summit, divergent opinions arose among G7 members regarding their approach to China. The United States advocated for targeted controls on investment in China, while Germany, France, and Japan exercised caution due to potential economic ramifications.
These differences became more apparent when French President Emmanuel Macron visited Beijing and urged the European Union to decrease reliance on the United States.
However, the language used in the G7 communique demonstrated a pragmatic approach. The leaders acknowledged that their intention was not to hinder China's economic progress and development. Instead, they emphasized that each country would act in its own national interest.
According to an anonymous Japanese government official, differences within the G7 nations regarding issues like U.S. investment restrictions on China are apparent. However, the official noted that the summit still managed to convey a message that went beyond these differences.
As discussions progressed among G7 members, a French presidential official mentioned that the language of the communique was adjusted to achieve a more balanced approach.
The official further explained that the core message they aimed to convey during the G7 was the European perspective on China as a partner, complementing their interests, and simultaneously being a systemic rival, all articulated within the framework of G7 language.
The G7 was cautious in selecting language that would not isolate or alienate members of the "Global South," which includes emerging countries like India that the G7 seeks to engage with.
The intention was to avoid providing China with a reason to complain and to maintain a balanced approach within the G7. Mikko Huotari from the Mercator Institute for China Studies characterized this as a deliberate effort by the G7 to navigate these dynamics.
The G7 summit saw discussions about China and the adoption of a "de-risking" approach instead of complete decoupling. The United States indicated it would consult with G7 partners on outbound investment controls. China expressed displeasure and summoned Japan's envoy in protest.
The G7 leaders spoke cautiously about China, with President Biden anticipating improved relations and Chancellor Scholz emphasizing continued investments while reducing risk exposure.
The focus on de-risking aims to avoid dependence on any single country for essential products. However, there are concerns about China's response and whether the distinction between de-risking and decoupling is meaningful to Beijing.