G7 to send ‘clear signal’ to China on South China Sea claims

China rejects ‘hype’ as Japan summit focuses on maritime dispute and global economy

From left, Italian prime minister Matteo Renzi, German chancellor Angela Merkel, Canadian prime minister Justin Trudeau, Japanese prime minister Shinzo Abe, French president Francois Hollande, US president Barack Obama, British prime minister David Cameron (hidden), European Commission president Jean-Claude Juncker and European Council president Donald Tusk (hidden) walk before a G7 photo session at the Shima Kanko Hotel  in Kashikojima, Japan. Photograph:  Foreign Ministry of Japan via Getty Images
From left, Italian prime minister Matteo Renzi, German chancellor Angela Merkel, Canadian prime minister Justin Trudeau, Japanese prime minister Shinzo Abe, French president Francois Hollande, US president Barack Obama, British prime minister David Cameron (hidden), European Commission president Jean-Claude Juncker and European Council president Donald Tusk (hidden) walk before a G7 photo session at the Shima Kanko Hotel in Kashikojima, Japan. Photograph: Foreign Ministry of Japan via Getty Images

Group of Seven (G7) leaders agreed on Thursday on the need to send a strong message on maritime claims in the western Pacific, where an increasingly assertive China is locked in territorial disputes with Japan and several southeast Asian nations.

The agreement prompted a sharp rejoinder from China, which is not in the G7 club but whose rise as a power has put it at the heart of some discussions at the advanced nations' summit in Ise-Shima, central Japan.

"Prime minister [Shinzo] Abe led discussion on the current situation in the South China Sea and East China Sea. Other G7 leaders said it is necessary for G7 to issue a clear signal," Japan's deputy chief cabinet secretary Hiroshige Seko told reporters after a session on foreign policy affairs.

At a news conference late on Wednesday, Mr Abe said Japan welcomed China’s peaceful rise while repeating Tokyo’s opposition to acts that try to change the status quo by force and urging respect of the rule of law – principles expected to be mentioned in a statement after the summit.

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The United States is also increasingly concerned about China's action in the region.

Chinese foreign ministry spokeswoman Hua Chunying retorted in Beijing that the South China Sea issue had "nothing to do" with the G7 or any of its members. "China is resolutely opposed to individual countries hyping up the South China Sea for personal gain," she said.

US president Barack Obama called on China on Wednesday to resolve maritime disputes peacefully and he reiterated that the United States was simply concerned about freedom of navigation and overflight in the region.

Mr Obama on Thursday pointed to the risks from North Korea’s nuclear and missile programmes, saying the isolated state was “hell bent” on getting atomic weapons.

But he said there had been improved responses from countries in the region like China that could reduce the risk of North Korea selling weapons or nuclear material.

“It’s something that we’ve put at the centre of discussions and negotiations with China,” Mr Obama told reporters.

Global economy

The global economy topped the agenda earlier in the day, when G7 leaders voiced concern about emerging economies and Mr Abe made a pointed comparison to the 2008 global financial crisis. Not all his G7 partners appeared to agree.

The G7 leaders did agree on the need for flexible spending to spur world growth but the timing and amount depended on each country, Mr Seko told reporters, adding some countries saw no need for such spending. Britain and Germany have been resisting calls for fiscal stimulus.

“G7 leaders voiced the view that emerging economies are in a severe situation, although there were views that the current economic situation is not a crisis,” Mr Seko said .

Mr Abe presented data showing global commodities prices fell 55 per cent from June 2014 to January 2016, the same margin as from July 2008 to February 2009, after the collapse of Lehman Brothers on Wall Street. Its failure triggered the global financial crisis.

Mr Abe hopes, some political insiders say, to use a G7 statement on the global economy as cover for a domestic fiscal package including the possible delay of a rise in the nation’s sales tax to 10 percent from 8 percent planned for next April.

Trump criticism

Mr Obama sharply criticised Republican presidential candidate

Donald Trump

, saying the billionaire had rattled other G7 leaders and that his statements were aimed at getting headlines, not what was needed to keep America safe and the world on an even keel.

Mr Trump has been accused of racism, misogyny and bigotry for saying he would build a wall to keep out illegal Mexican immigrants and would temporarily ban Muslims from the United States.

Summit pageantry began when Mr Abe escorted G7 leaders to the Shinto religion’s holiest site, the Ise Grand Shrine in central Japan, dedicated to sun goddess Amaterasu Omikami, mythical ancestress of the emperor.

On Wednesday night, Mr Abe met Mr Obama for talks dominated by the arrest of a US military base civilian worker in connection with the killing of a young woman on Japan's southern Okinawa island, reluctant host to the bulk of the US military in Japan.

The attack has marred Mr Obama’s hopes of keeping his Japan trip strictly focused on his visit on Friday to Hiroshima, site of the world’s first atomic bombing, to highlight reconciliation between the two former second World War foes and his nuclear anti-proliferation agenda.

Reuters