G7 vs. China: The economic war that is redefining global trade

The world's seven richest economies (G7) have formalized a bloc to counter China's "non-market practices." This escalation, ranging from subsidies to e-commerce bundling, marks the beginning of a new era of global economic confrontation with direct implications for consumers.

In a move that redefines the global geopolitical and economic landscape, the finance ministers of the Group of Seven (G7) have joined forces to launch a coordinated offensive against what they consider a global "economic imbalance," with China as the implicit target of their actions. Although the final communiqué avoids directly naming Beijing, the language used leaves no room for doubt: the world is witnessing the emergence of a new economic cold war that threatens to disrupt supply chains, international trade, and ultimately, the price of products that reach consumers.

The final communiqué issued by the G7 sends a "clear signal to the world that the G7 is united in purpose and action." Officials from the United States, Canada, the United Kingdom, Japan, Germany, France, and Italy agreed to monitor "non-market policies and practices" to counter global imbalances. This is a direct and calculated reference to China's economic model, driven by state subsidies and massive exports, which the G7 claims undermines a "level playing field."

However, this apparent unity is a strategic construct that hides deep internal divisions. A detailed analysis of the communiqué reveals a deliberate and significant omission: no mention is made of the tariffs imposed by the Trump administration on its own allies, a major point of contention. Canadian Finance Minister François-Philippe Champagne downplayed this absence but admitted that tariffs are something that "cannot be avoided."

This agreed-upon silence demonstrates that the G7's "unity" is a fragile facade, constructed for the sole purpose of projecting force against China, forcing members to temporarily shelve their own trade disputes. The tension of this new order lies precisely in the precariousness of this consensus.

The economic confrontation is being waged on increasingly specific and tangible fronts. The G7 is not only targeting China's state subsidies, but also practices that directly affect Western consumers.

One of the key targets is the exploitation of "de minimis" packages, low-value shipments that often evade tariffs. Specifically, it is noted that e-commerce companies such as Shein and Temu have used the tax exemption for packages valued under $800 in the United States to flood the market, a practice the G7 is seeking to counter.

"We agreed on the importance of a level playing field and a broadly coordinated approach to addressing the harm caused by those who do not play by the same rules and lack transparency." – Final Communiqué of the G7 Finance Ministers.

* Strengthening Supply Chains: There is a concerted effort to reduce dependence on China in critical sectors such as minerals for electric vehicle batteries and semiconductors.

* Response to "Predatory" Policies: The group pledged to coordinate a response to Chinese export policies that they say threaten the competitiveness of all nations and destabilize global supply chains.

This approach reflects a tactical shift: economic warfare is moving from high finance to the consumer's shopping cart, seeking to disrupt the tangible benefits that Chinese companies offer in the West.

Faced with the paralysis of traditional institutions such as the World Trade Organization (WTO), which has proven "ineffective" in managing the "weaponization of trade" by both the United States and China, the G7 has taken on a new role.

Analysts point out that many of the major issues of global governance have "fallen by default to the G7." The group is no longer merely reacting, but actively trying to set the rules for a new era of "fragmentation and competition with China." By coordinating issues such as carbon accounting, supply chain resilience, and artificial intelligence, the G7 is building the architecture of a parallel economic system, designed to operate in direct competition with Beijing's sphere of influence. This is a historic shift with little long-term consequences.