Kishida in G7 Summit

The Group of Seven (G7) leaders agreed in the annual summit meeting in Italy on providing $50 billion of loans for Ukraine, using interest of frozen Russian assets. Japanese Prime Minister, Fumio Kishida, offered bilateral support for Ukraine in the meeting with Ukrainian President, Volodymyr Zelensky. Kishida also tried to lead the discussion over security in Indo-Pacific region, insisting that Russian invasion in Ukraine and China’s advance in Asia has a common ground.

G7 countries have frozen some $300 billion worth of Russian assets since the invasion in 2022. G7 leaders agreed on setting up $50 billion loan for the Ukrainians and use $3 billion of interest of the frozen assets to pay off annual interest of the loan. The loan will be used for military equipment, governmental finance, humanitarian support or reconstruction.

 

While the United States and the United Kingdom have been willing to freeze Russian assets, the European Union and Japan were skeptical about the idea from the perspective of international laws. It is difficult for Japan to directly support Ukraine’s military operation with requirement of the Constitution of Japan, which renounces war as a measure of settling international conflicts. Japan’s contribution will be made through separate bank account from military support.

 

US President, Joe Biden, signed a ten-year bilateral security deal with Ukraine, which included military and training aid. Kishida signed an accord on support for Ukraine in a bilateral meeting with Zelensky, which included provision of non-lethal equipment, cooperation in information technology and demining, and treatment of injured Ukrainian service members. Although Japan’s supports were limited to non-military measures, Zelensky welcomed the accord and thanked for Japan’s support in finance, power generation or demining.

 

In the G7 session on Indo-Pacific and economic security, Kishida explained Japan’s view on the situation in Indo-Pacific region, stating that “the security of the region and that of Europe is inseparable.” The leaders confirmed to continue working together to address the issues related to China and North Korea. They also discussed how to address industrial overcapacity by China. G7 leaders’ communiqué expresses their concerns about China’s overcapacity in a growing range of sectors.

 

G7 countries has taken different approaches against China’s overcapacity. US has decided to impose 100% tariff on Chinese electric vehicles and 50% on solar cells. However, Germany is not willing to raise tariff, while France is positive on it. Paying respect to free trade, Japan is not considering raising tariff on Chinese goods.

 

Concerning growing security tension in East Asia, as seen in China’s military exercise around Taiwan after the Taiwanese presidential election, Japan has been urging the leaders to pay attention to the security situation in the region. However, Japan’s basic stance that it would not allow unilateral and forcible change of status quo has not discouraged China from advancing to the region. 

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