G7 finance heads vow financial stability, supply chain diversity

Group of Seven (G7) finance leaders have pledged to take action to maintain the stability of the global financial system after recent banking turmoil and to give low- and middle-income countries a bigger role in diversifying supply chains to make them more resilient. Their communique did not mention China by name but the supply-chain language fits in with "friend-shoring" efforts by industrial democracies to work with each other to become less reliant on the Asian manufacturing powerhouse for battery minerals, semiconductors and other strategic goods. "We commit to jointly empowering low- and middle-income countries to play bigger roles in supply chains through mutually beneficial cooperation by combining finance, knowledge, and partnership, which will help contribute to sustainable development and enhance supply chain resilience globally," the G7 finance ministers and central bank governors said in the statement on Wednesday. The finance chiefs of G7 nations – Canada, France, Germany, Italy, Japan, the United Kingdom and the United States – met on the sidelines of International Monetary Fund (IMF) and World Bank meetings in Washington, DC. They said they discussed recent financial sector developments after the failure of two United States banks and the forced sale of troubled global lender Credit Suisse. "We will continue to closely monitor financial sector developments and stand ready to take appropriate actions to maintain the stability and resilience of the global financial system," the G7 finance leaders said.