G7 economic confrontation with China and Russia, Korea-China summit ‘FTA economic cooperation’, Korea-Japan ‘resource resources’
The G7 decided on economic confrontation with China and Russia in Italy, the Korea-China summit in Seoul agreed on ‘FTA economic cooperation’ and the leaders of Korea and Japan agreed on ‘resource cooperation’.
A joint statement from the G7 Finance Ministers' meeting on the 25th said, "We are making progress in discussions on potential ways to leverage significant benefits from immobilized Russian sovereign assets for Ukraine's benefit," adding that China and Russia are two major adversaries. Announced availability of $300 billion in Russian assets through 'unity'.
Regarding China, the Treasury secretaries said, “China’s comprehensive use of non-market policies and practices undermines our workers, our industries, and our economic resilience,” and that they will monitor the negative impacts of China’s excess capacity and “level the playing field.” They agreed to “consider taking steps to ensure that”
A joint statement said financial officials from the world's developed countries at the G7 meeting moved toward an agreement on 'how to use' Russia's $300 billion in frozen central bank assets to support Ukraine and warned against China dumping cheap exports into the market. He stated that his goal was to unite economic power to deal with the twin crises.
Commenting on the joint statement, the New York Times said, “The proposals they are currently considering at a three-day meeting in Stresa, Italy, could deepen the divisions between the alliance of wealthy Western economies and Russia, China and their allies, economists fear. “The G7’s efforts to influence the two powerful adversaries have met with limited success in recent years, but rich countries are making new efforts to test the limits of their combined economic power.” “We are working hard,” he said.
At the Korea-China summit held in Seoul on the 26th, President Yoon Seok-yeol discussed resuming the second phase of negotiations for the Korea-China FTA (Free Trade Agreement) and expanding openness to service fields such as culture, tourism, and law in addition to the product trade field that has been promoted so far.
The President's Office is a reporter. He said, "There are areas of contention in the negotiations that are being discussed with a focus on the service sector rather than product trade. There are some concerns about games and some other areas, so we have decided to continue close discussions between the two countries." On this day, the leaders of Korea and China agreed to strengthen cooperation in the economic field by resuming the Korea-China Investment Cooperation Committee, which had been suspended for 13 years, and launching the Korea-China export control dialogue system in the supply chain sector.
The Korea-Japan summit decided to jointly respond to the crisis in the supply chain of key minerals by establishing a hydrogen cooperation dialogue and establishing a Korea-Japan resource cooperation dialogue to promote the expansion of the global hydrogen supply chain between the two countries. In his meeting with Prime Minister Lee, President Yoon said, “Our companies are in China.” “I hope that an economy that meets global standards and investment support policies will be implemented so that we can invest more actively and conduct business activities with greater confidence,” he said.
Deputy Director Kim Tae-hyo said Prime Minister Lee said, “We will continue to promote marketization based on the rule of law. “We will further increase internationalization,” he responded, expressing his willingness to consider and support Korean companies,” he said in a briefing.
Regarding the Ukraine situation at the summit, President Yoon said, “As the war in Ukraine and the Hamas situation in Israel continue, uncertainty in the global economy is increasing,” adding, “I hope that the two countries will strengthen exchange and cooperation, respect each other, and pursue common interests.” “I do it,” he said.
China's Xinhua News Agency said on this day that Prime Minister Li told President Yoon that the two countries should oppose escalating economic and trade issues into political or security issues and should strive to maintain a stable supply chain.
Regarding Prime Minister Li's remarks, Reuters said, "China is ready to strengthen cooperation in high-tech manufacturing, new energy, artificial intelligence, biomedicine and other fields," and added, "South Korea and Japan, allies of China and the United States, are willing to cooperate with Beijing and Washington." “We are trying to manage rising distrust amid competition and tensions surrounding Taiwan,” the report said.
Reuters continued, “China has warned that U.S. efforts to further elevate relations with South Korea and Japan could inflame regional tensions and confrontation,” adding, “Seoul and Tokyo are attempting to forcibly change the status quo in the Taiwan Strait.” On the 28th, Beijing criticized the decision of South Korean and Japanese lawmakers to attend Taiwan President Lai Ching-te's inauguration ceremony.
The G7 meeting, which discussed using $300 billion in Russia's frozen assets, spent a lot of time discussing the details of using Russian central bank assets to provide long-term aid to Ukraine.
“The key is to ensure proper, strong and long-term financing for the Ukrainian government,” French Finance Minister Bruno Le Maire said at a meeting on the 24th. “They need our support and the support of all G7 countries.” “We can count on unified support,” he said.
U.S. Treasury Secretary Janet Yellen said on the 25th after the meeting that "this is the main option being considered right now," adding, "I think there is broad support for the general notion that that's a productive way to move forward," using profits from $300 billion in assets to raise up to $50 billion. The US method of ‘loaning Ukraine’ was formalized to receive support from some G7 countries at the value of the dollar.