G7 Cuts Dependence on Critical Minerals, China in Spotlight

G7 is starting to move more seriously to secure critical mineral supplies. The leaders of the group of advanced democratic countries agreed to reduce dependence on a single supplier, amid China's dominance in the supply chain of rare earth metals that are important materials for modern technology and defense industries.

According to a Kyodo News report, Thursday, June 18, the agreement was contained in a joint declaration issued on the last day of the G7 summit in Evian-les-Bains, France.

The G7 promised to respond collectively to economic pressure related to critical minerals, including export restrictions and retaliatory trade actions.

The leaders also set a target of reducing dependence on a single supplier of rare earth metals and permanent magnets to below 60 percent by 2030.

The move comes as China still dominates the world's rare earth metals market. The country controls about 70 percent of global production and about 90 percent of processing capacity.

The position gives Beijing great influence over the supply chain of various strategic industries, ranging from electric vehicles, semiconductors, to defense systems.

Rare earth metals are a group of minerals used in various modern technologies. These materials are an important component for batteries, chips, wind turbines, industrial magnets, to military equipment.

In addition to critical minerals, G7 leaders discussed broader global economic challenges. From economic imbalances, trade tensions, to rising debt amid slowing growth and geopolitical uncertainty.

Japanese Prime Minister Sanae Takaichi called for closer cooperation between the G7 countries and their partners to reduce global economic uncertainty.

According to the Japanese Ministry of Foreign Affairs, Takaichi also asked for attention to non-market policies and practices that trigger excess production and economic distortions.

Takaichi, who attended his first G7 summit since taking office last October, hopes the group will continue to play a leading role in maintaining global economic stability through open dialogue.

Japan's first female prime minister also said she looked forward to further discussions at the G20 summit to be led by US President Donald Trump in December.

The issue of artificial intelligence (AI) was also one of the main agendas on the last day of the meeting.

G7 leaders agreed to encourage the implementation of AI safely, quickly, and efficiently. At the working lunch, they discussed AI innovation, its application in various sectors, as well as child safety issues on the internet.

A number of executives from American technology companies, including Anthropic and OpenAI, took part in the discussion.

Interest in AI has continued to increase since the widespread use of generative AI. At the same time, governments of various countries are also trying to anticipate risks such as disinformation, cyber security threats, and their impact on the labor market.

Although both support the development of trusted AI, the G7 countries still have different regulatory approaches, especially between the United States and the European Union.

During the session, Takaichi said the development of AI and digital technology is one of Japan's 17 major growth strategies and an important driver of global economic growth.

He also said Japan is working with like-minded countries and Global South countries to develop an AI ecosystem that is tailored to local conditions and built on the basis of mutual trust.

Kyodo News also reported that the issue of global imbalances was discussed in the trade and industrial policy sessions. G7 members expressed concern about industrial overcapacity, state subsidies, and market distortions in a number of major economies, especially China.

Ahead of the summit's closure, leaders stressed the importance of continued cooperation in facing economic and technological challenges.

The G7 summit ended without a traditional communique or joint statement for the second consecutive year. This condition reflects the still existing differences of opinion among members on a number of issues.

Instead, leaders issued several special statements addressing specific topics, including geopolitical challenges, the eradication of drug trafficking, and the handling of migrant smuggling.

A tentative deal between the United States and Iran to end a months-long war was also one of the main issues in the early discussions of the summit.

Trump, who arrived at the forum after announcing the deal, called it a "breakthrough" and "incredible deal" for global security.

On Wednesday, a senior United States official revealed details of a memorandum of understanding between Washington and Tehran. The deal is scheduled to be formalized on Friday in a ceremony in Switzerland.

The G7 consists of the United Kingdom, Canada, France, Germany, Italy, Japan, and the United States, as well as the European Union. The French host also invited a number of other leaders, including Brazil, Egypt, India, Kenya, and South Korea.