China confronts G7 during Macron’s call by defending free trade

CHINESE Vice-Premier Zhang Guoqing made a case for the benefits of free trade during a video call on Thursday (Jun 11) with the Group of Seven (G7) countries, as Beijing faces questions over its role in contributing to global economic imbalances.

“All countries should uphold openness and cooperation, take an objective view of the comparative advantages of different countries, foster a free and facilitative trading environment, and practice true multilateralism,” Zhang was quoted as saying by state news agency Xinhua.

French President Emmanuel Macron chaired the session that also included German Chancellor Friedrich Merz and Canadian Prime Minister Mark Carney.

France has been pushing to address lopsided economic growth as part of its G7 presidency. China has long drawn criticism for its vast trade surplus and insufficient domestic demand.

The rare invite for Beijing to take part in the multilateral discussion came against the backdrop of talks in Europe over possible new restrictions to counter China’s export surge. Beijing has threatened to retaliate against any new European trade barriers.

While Zhang, China’s representative on the G7 call, does not usually handle trade matters, Macron has framed his participation as diplomatic progress.

The French president’s office said in a Tuesday statement the talks signal a “new willingness” by China, the US and Europe to coordinate economic approaches. Macron had previously considered inviting Chinese President Xi Jinping to the G7 summit in France this year.

Zhang has previously travelled to France multiple times, including for the Nuclear Energy Summit in March. He typically oversees affairs such as digitalisation and management of state-owned companies.

Top Chinese trade negotiators Li Chenggang and Liao Min also joined the call. Other attendees included US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer.

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As tensions fester between Beijing and Brussels, China’s economic ties with the US, Canada and the UK – also G7 members – have stabilised following leadership visits and trade agreements. The grouping of wealthy nations also includes Japan, Italy and Germany.

Avoiding a further strain in ties with the European Union is proving a challenge for Beijing.

China cancelled a meeting with EU officials on digital issues, citing timing conflicts, according to sources familiar with the matter, who spoke on the condition of anonymity. The meeting had been planned for later this month.

Still, EU trade chief Maros Sefcovic is expected to meet with Chinese Commerce Minister Wang Wentao in Brussels at the end of the month, according to sources familiar with the plans. Before that, EU leaders will meet next week to discuss China’s industrial overcapacity.

Sefcovic said last week that he expects leaders to give the European Commission, which handles trade matters for the EU, guidance on “concrete tools” to reinforce trade security. BLOOMBERG