G7 finance leaders pledge financial stability, supply chain diversity

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French Finance Minister Bruno Le Maire, who participated in the G7 meeting, tells reporters that diversification away from China and alliances with allies are necessary.

Shunichi Suzuki, the finance minister of G7 host Japan, said that stability had returned to the financial system after“We will continue to closely monitor financial sector developments and stand ready to take appropriate actions to maintain the stability and resilience of the global financial system,” the G7 finance leaders said.The ministers said that supply chains needed to achieve both efficiency and resilience, helping to maintain macroeconomic stability and make economies more sustainable.

Suzuki said the language was not specifically aimed at China, but added that the G7 group views a high concentration of supply chains in a single country was not desirable, noting that many supply chains were highly concentrated in China.The IMF has warned in its latestthat fragmentation of the global economy into geopolitical blocs is a significant factor in reducing longer-term growth potential, with only 3% growth expected in 2028.

“As far as the production of green hydrogen is concerned, or artificial intelligence or semiconductor chips, or electric batteries, or other strategic goods, we need to be more independent,” Le Maire told reporters.In addition to working more closely with developing countries on supply chains, the G7 finance officials pledged to encourage joint research and development efforts among G7 members and other “interested parties.

 

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