G7 leaders are set to intensify talks on diminishing dependence on China for critical minerals during the final day of their summit in Evian-les-Bains, France, on Wednesday. The French presidency is advocating for a joint declaration that outlines measures to enhance supply chain resilience and shield Western economies from potential disruptions.
The summit, held from June 15 to 17, addresses growing vulnerabilities in global supply chains, especially in sectors like defense, energy, and advanced technology. French officials are negotiating language emphasizing economic sovereignty and coordinated action among member nations, with critical minerals and economic independence at the forefront of France’s agenda.
The urgency of these discussions escalated after China imposed export restrictions in 2025 on rare earth products, including permanent magnets vital to high-tech manufacturing. This move disrupted global industries and highlighted Western economies’ heavy reliance on Chinese-controlled supply chains. Beijing has also tightened export controls on other strategic materials such as tungsten and antimony, fueling concerns over long-term supply security.
In response, G7 countries are exploring various strategies, including investment incentives, pricing mechanisms, subsidies, and guaranteed procurement schemes to boost mining, processing, and recycling capacities outside China. However, officials acknowledge that most of these initiatives are in early stages and will require years to develop viable alternatives.
Meanwhile, Western governments are accelerating efforts to diversify supply sources through partnerships with mining nations and increased domestic production. The United States has proposed establishing a critical minerals trading bloc, although disagreements remain among allies regarding its structure, especially given Washington’s “America First” trade stance.
Despite growing coordination, analysts note that China still dominates global refining and processing capacities, a position built over decades that will be challenging to overturn in the near term.
Beyond minerals, G7 leaders are expected to tackle broader economic imbalances, particularly China’s expanding industrial surplus and its rising influence in advanced manufacturing. European officials describe this as a “second China shock,” following the earlier wave of Chinese dominance in low-cost manufacturing during the 2000s. France characterizes the imbalance as one where China overproduces, the United States consumes excessively, and Europe underinvests.
The European Union is increasingly considering stronger trade defense measures in response to surging imports from China. Last year, the EU recorded a record trade deficit exceeding €360 billion with China, intensifying calls for policy interventions. European Commission President Ursula von der Leyen described the situation as “not sustainable,” reaffirming the EU’s approach of “de-risking rather than decoupling” from China.
China has rejected accusations of unfair subsidies and warned of retaliatory measures against European initiatives aimed at bolstering industrial sovereignty.
In a significant development, G7 leaders will also discuss artificial intelligence governance during a Wednesday lunch session. The focus will be on accountability for AI systems and distinguishing between authentic and synthetic content. Prominent technology leaders, including OpenAI founder Sam Altman and Anthropic CEO Dario Amodei, are expected to participate, underscoring the increasing intersection between global governance and emerging technologies.
