Isolating China will be 'impossible and dangerous,' analyst says, as the G-7 gets tough on Beijing

The G-7 issued its strongest ever connection to China implicit the weekend, but an expert warned that isolating Beijing is "impossible" and "dangerous."

The world's largest 7 economies agreed astatine a acme successful Hiroshima, Japan, to de-risk and diversify their proviso chains distant from China, amid concerns of economical coercion. There has been a increasing consciousness among Western nations that their economies trust heavy connected China. The coronavirus pandemic shed airy connected the intricacies of captious proviso chains, but the ongoing war successful Ukraine has further exacerbated this reality.

In a associated connection aft the summit, the Group of Seven said: "Our argumentation approaches are not designed to harm China nor bash we question to thwart China's economical advancement and development. ... At the aforesaid time, we admit that economical resilience requires de-risking and diversifying."

In the aftermath of the G-7 announcement, China summoned the Japanese ambassador and ordered companies to stop buying from American chipmaker Micron.

Giuliano Noci, vice-rector for China for Politecnico di Milano, connected Monday told CNBC's "Squawk Box Europe" that the G-7 showed a "unitarian" position against China.

"[President Joe] Biden spoke successful presumption of de-risking and not successful presumption of decoupling. Decoupling was the magic connection of the United States inactive a period ago, but it is precise wide that, fixed the relation played by the Chinese marketplace for respective products, fixed the level of intertwines among proviso chains, it is astir intolerable to decouple," Noci said.

De-risking refers to easing immoderate of the dependencies connected China, alternatively than wholly breaking the relationship.

"It should beryllium wide that isolating China volition beryllium not only, connected the 1 hand, intolerable but also, connected the different hand, dangerous," Noci said.

The displacement from the Biden medication possibly highlights the realization that it would instrumentality a large woody of effort and economical symptom to abstracted its system from that of China.

Figures from the United States Census Bureau showed that the U.S. recorded a trade deficit successful goods with China of astir $383 cardinal successful 2022. The information from past twelvemonth showed a record high successful commercialized betwixt the nations and is grounds of the difficulties of separating their economies.

G-7 leaders went further successful expressing their concerns astir the concern successful the East and South China Seas and successful supporting a "no change" successful the presumption quo of Taiwan.

"There is nary ineligible ground for China's expansive maritime claims successful the South China Sea, and we reason China's militarization activities successful the region," they said.

Speaking to CNBC, Noci said, "we are going beyond a unipolar world" that had the U.S. arsenic its superpower, and entering a bipolar oregon multipolar world.

British Prime Minister Rishi Sunak said China was the world's top situation to information and prosperity. The Chinese Embassy successful London described this arsenic "malicious slanders successful disregard of the facts," according to Reuters.