China Tops G7 Agenda

The G7 leaders wrapped up their annual summit on Friday, with China being the primary topic of discussion. This year, the summit saw a historic appearance by Pope Francis, who addressed the group on artificial intelligence (AI).

The G7 opened its doors to leaders from other nations to shed its image as an exclusive club. The attendees included the prime minister of India and the king of Jordan, among others.

Ukraine Aid Agreement

On the first day of the summit, held in southern Italy, the G7 nations agreed to a significant financial aid package for Ukraine. The deal includes $50 billion in loans backed by interest from frozen Russian assets. This agreement is intended to demonstrate Western solidarity and determination.

Despite many details still needing clarification, the G7 members—the United States, Canada, Japan, Germany, France, Italy, and Britain—along with the European Union (EU), are expected to contribute. The funds are projected to reach Kyiv by the end of the year.

“This is a very historic step we’re taking today,” stated German Chancellor Olaf Scholz. He emphasised that the deal sends a clear message to Russian President Vladimir Putin that he cannot outlast Western support for Ukraine.

Focus on China

While Ukraine was the focus on the first day, discussions shifted to China on Friday. The leaders expressed concerns about China’s excessive industrial capacity and its support for Russia. This week, the U.S. imposed new sanctions on Chinese firms supplying semiconductors to Russia, reflecting worries over Beijing’s aggressive posture towards Taiwan and disputes with the Philippines over maritime claims.

U.S. President Joe Biden remarked, “China is not supplying weapons to Russia, but it provides the capability to produce those weapons and the necessary technology, thus aiding Russia.”

Earlier in the week, the EU announced additional duties of up to 38.1% on imported Chinese electric cars, starting in July. This move risks retaliation from Beijing, which has vowed to protect its interests. However, there are differences within the G7 on handling Chinese state subsidies, with Europe cautious of triggering a trade war with Beijing.

Papal Audience and Other Discussions

Pope Francis, making a historic appearance, held multiple bilateral meetings, including with Biden, Ukrainian President Volodymyr Zelenskiy, and Turkish President Tayyip Erdogan. Italian Prime Minister Giorgia Meloni expressed pride in hosting the pontiff under Italy’s presidency, marking the first time a pope attended a G7 summit.

Besides AI, leaders discussed immigration, a significant issue for Meloni, who seeks European help to curb illegal migration from Africa. She has initiated a plan to boost development in Africa to address the root causes of migration.

Most leaders are set to depart Italy late on Friday, having agreed on the summit’s conclusions, which will be officially approved at the end of the day. Bilateral meetings will continue on Saturday for those staying, with Meloni scheduled to give a final news conference.