G7 Finance Leaders Target Global Economic Imbalances

Finance ministers and central bank governors from the G7 nations aim to tackle global economic imbalances. They stress the need for a unified approach to counteract non-market policies undermining international economic security and emphasize a level playing field in trade practices, without explicitly naming China.

Finance ministers and central bank governors from the Group of Seven nations have pledged to address what they describe as 'excessive imbalances' within the global economy. According to a draft communique reported by Bloomberg News, these leaders stressed the necessity for a unified understanding to counteract non-market policies compromising international economic security.

The draft calls for a thorough analysis of market concentration and the resilience of international supply chains. The leaders underscored the importance of creating a fair competitive environment and advocating a broadly coordinated approach to tackle the challenges posed by entities that evade established rules and lack transparency.

Although the draft does not specifically name China, it acknowledges an uptick in low-value international shipments, commonly associated with Chinese retailers like Temu and Shein. Additionally, the G7 may consider intensifying sanctions on Russia if a ceasefire in Ukraine is not achieved. Finance ministers from the G7 are currently convening in Banff, Canada, where these issues are part of ongoing discussions.

(With inputs from agencies.)