Kishida of Japan asserts that the G7 is at a crucial point as financial leaders complete discussions on worldwide economy.

Japanese Prime Minister Fumio Kishida has stated that the world is at a “historic turning point” as the seven industrialized nations prepare for a summit in Hiroshima next week. Finance leaders from the G7 concluded a three-day meeting in the Japanese port city of Niigata on Saturday. They confirmed their solidarity in supporting Ukraine, strengthening the financial system and supply chains, and addressing other pressing global concerns.

Kishida stated that the international community is facing divisions and conflicts such as Russia’s invasion of Ukraine and Sudan. He added that they resolutely reject the threat or use of nuclear weapons and will protect the international order based on the rule of law. As the G7 chairman, he expressed a strong desire to influence history.

The economic size of the G7 countries is only one-tenth of the world’s population, but their share of economic activity is about 30%. However, developing countries such as China, India and Brazil are experiencing significant growth, which raises questions about the G7’s role in leading the global economy. China has criticised the hypocrisy of the United States and other G7 countries’ claims that they defend a “rules-based international order” and combat “economic coercion” from Beijing.

The G7 finance ministers and central bank governors face several challenges in promoting a strong and stable global economy. They reiterated their condemnation of Russia’s actions in the war against Ukraine and their determination to support Ukraine “as long as necessary.” The talks have raised tensions with China and Russia. The G7 finance ministers and central bank chiefs discussed ways to thwart “economic coercion” by China and how to prevent countries from circumventing sanctions against Russia.

Japan, the only Asian member of the G7, will take steps to strengthen its supply chains to reduce the risk of disruptions such as those seen during the pandemic. The failures of Silicon Valley Bank and other financial institutions were largely due to the pressure of rising interest rates aimed at slowing business activity by making borrowing more expensive.

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