China Vice Premier to Join Macron’s G7 Call on Trade Imbalances

Zhang Guoqing Photographer: Nathan Laine/Bloomberg Photo by Nathan Laine /Photographer: Nathan Laine/Bloom

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(Bloomberg) — Chinese Vice Premier Zhang Guoqing will join a video call Thursday with Group of Seven countries to discuss trade imbalances, following a rare invite for China to take part in the multilateral discussion. 

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China’s Ministry of Foreign Affairs announced his participation in a statement on Thursday. French President Emmanuel Macron will chair the session, with attendees including G7 nations, partner countries like India and South Korea, and the IMF. Macron had previously considered inviting Chinese President Xi Jinping to the G7 summit in France this year.

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The exchange comes as Europe weighs new restrictions to counter China’s export surge, with EU officials blaming the imbalance on Chinese industrial subsidies and weak domestic demand. Beijing has threatened to retaliate against any new European trade barriers.

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In contrast, China’s economic ties with the US, Canada and the UK — also G7 members — have stabilized following leadership visits and trade agreements. This progress contrasts sharply with the growing friction between Beijing and the European Union. The grouping of wealthy nations includes also Japan, Italy and Germany.

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

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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 people familiar with the plans. Before that, EU leaders will meet next week to discuss China’s industrial overcapacity. 

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

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Zhang, China’s representative to the G7 call, does not usually handle trade matters, but 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.

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

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—With assistance from Jing Li.

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