Niigata, Japan (AP) – Financial leaders from the Group of Seven (G7) nations united on Saturday in their support for Ukraine and their determination to impose sanctions on Russia’s aggression, but refrained from outright mentioning China.
After three days of talks in Niigata, finance ministers and central bank chiefs released a joint statement pledging to curb inflation, help countries with high debt burdens and strengthen their financial systems.
The two leaders also pledged to work together to build more stable and diversified supply chains for the development of clean energy sources and “strengthen global economic resilience to a range of shocks.”
The statement made no specific reference to “economic coercion” in pursuit of political ends, such as penalizing companies in China or governments whose behavior offends other countries.
The topic of this week’s move by China has prompted outcry from the Chinese government. Officials attending talks in the port city outright criticized China, given that most countries have a huge stake in good relations with the rising power and second-largest economy. He seems hesitant to criticize.
The meeting of finance leaders laid the groundwork for next week’s G7 summit in Hiroshima, where President Joe Biden is expected to attend, despite the crisis over the US debt ceiling. If not resolved in the coming weeks, it could lead to a national debt default.
Japan’s Finance Minister Shunichi Suzuki said Treasury Secretary Janet Yellen had mentioned the issue at a working dinner but declined to comment further.
Mr. Yellen warned during his stay in Niigata. If governments do not raise the debt ceiling to keep the bills paid, an economic catastrophe could occur, destroying hundreds of thousands of jobs and disrupting the global financial system. Statements from finance leaders made no mention of the issue.
The G7’s commitment to upholding what it calls a “rules-based international order” was only briefly mentioned.
The Leaders said, “By maintaining a free, fair and rules-based multilateral system, we will strengthen global economic resilience to shocks, stand firm to safeguard our shared values, and promote economic efficiency. pledge to work within the G7 and with other countries to maintain ,” said.
The economies of the G7 countries are only one tenth of the world’s population, but their share of economic activity is about 30%, down from about half 40 years ago. Developing countries such as China, India and Brazil are reaping big gains, raising questions about the relevance and role of the G7 in leading a global economy increasingly dependent on the growth of less wealthy countries. .
China has lashed out at the hypocrisy of the United States and other G7 nations’ claims to protect a “rules-based international order” against “economic coercion” and other threats from Beijing.
China’s foreign ministry spokesman Wang Wenbin said on Friday that China itself is a victim of economic repression.
“If any country should be criticized for economic coercion, it should be the United States. They are taking unfair measures,” Wang said at a regular press conference.
China has accused the United States of hindering its rise as an increasingly wealthy modern nation through trade and investment restrictions. Yellen said it was “narrowly targeting” US economic security.
Despite recent turmoil in the banking industryThe G7 statement said the financial system had become “resilient” thanks to reforms implemented during the 2008 global financial crisis.
“Nevertheless, we need to remain vigilant and remain agile and flexible in our macroeconomic policies as uncertainty about the global economic outlook increases.”
He said inflation was still “high” and the central bank was determined to keep it in check.
Japan’s central bank governor Kazuo Ueda said some countries may continue to raise rates as prices remain “sticky”. “The impact of rate hikes is not fully reflected yet,” he told reporters.
Japan has launched a “partnership” to strengthen its supply chains to reduce the risk of disruptions such as those seen during the pandemic, when supplies of all kinds of goods, from medicines to toilet paper to high-tech computer chips, were disrupted. The call received support. Short in many countries.
Suzuki said the details of the plan will be worked out later.
“Through the pandemic, we have learned that supply chains tend to be dependent on a limited number of countries or one country,” he said, adding that economic security is a critical issue where more countries are needed by the world. It depends on whether it can help develop its capacity to supply safe minerals and other products, he added. Switch to emissions-free energy.
Tensions between China and Russia over war with Ukrainewhich inevitably became a major issue during talks in Japan, the only Asian member of the G7.
“We call for an immediate end to Russia’s illegal war against Ukraine, which would resolve one of the greatest uncertainties about the global economic outlook,” the joint statement said.
Financial leaders are not only interested in GDP and other metrics that often drive decisions that have a significant impact on people’s well-being, but ideas about how to give more weight to welfare in policymaking. I took my time and listened.
“These efforts will help maintain the G7’s core values of democracy and faith in a market-based economy,” the finance leaders’ statement concluded.
Suzuki drew many from a seminar by Nobel laureate and Columbia University economist Joseph Stiglitz, who worked in the Clinton administration and championed what he and other leaders called “progressive capitalism.” He said he learned
“It’s a very interesting perspective,” Suzuki said, adding that “so far we’ve been mostly looking at GDP and other numerical indicators.”
Contributed by Associated Press journalist Nuga Haruka.