Finance ministers and central bank officials from the Group of Seven (G7) leading industrialised nations are meeting in Paris for two days of discussions focused on mounting global economic risks, including the ongoing war in the Middle East, trade disputes and supply chain vulnerabilities.
The talks come as France, which holds the rotating G7 presidency, seeks to maintain unity among allies at a time of growing divisions over trade policy, fiscal pressures and geopolitical instability. Officials are also grappling with the economic impact of tariffs introduced under US President Donald Trump, which have added strain to already fragile global growth prospects.
A key focus of the agenda is reducing dependence on China for critical raw materials, particularly rare earth elements that are essential for advanced technologies, including artificial intelligence and renewable energy systems. The issue has become increasingly urgent as competition intensifies over supply chains and industrial resources.
French Finance Minister Roland Lescure said the current global economic model was under strain, pointing to rising US deficits, weak innovation in Europe and China’s efforts to counter domestic economic slowdown through expanded exports.
“Multilateralism can work,” Lescure said ahead of the meeting, while acknowledging that agreement among G7 members, including the United States, remains difficult.
The war in the Middle East has further complicated the economic outlook, contributing to volatility in energy markets and raising concerns about shipping routes, particularly through the Strait of Hormuz, a vital corridor for global oil transport.
German Finance Minister Lars Klingbeil said the G7 remained the appropriate platform for coordinating responses to the crisis. He warned that the conflict was harming global economic stability and stressed the need to secure uninterrupted maritime trade routes and work toward a lasting ceasefire.
“This war is massively damaging economic development,” Klingbeil said, calling for efforts to stabilise the region and protect global shipping lanes.
French officials are hoping the meeting will result in at least two joint statements addressing economic security and supply chain resilience. Even limited agreement would be seen as progress given current geopolitical tensions.
Ministers from Kenya, Brazil, India and South Korea have also been invited to participate in discussions ahead of the G7 summit scheduled to take place in Evian in June.
Analysts say the concept of “economic security” is increasingly shaping global policymaking, shifting focus from traditional trade balances to strategic dependencies in energy, technology and raw materials.
Pierre Jaillet of France’s Institute for International and Strategic Affairs noted that policymakers are now viewing trade imbalances through the lens of vulnerability rather than just macroeconomic stability.
France is advocating for a coordinated approach to reduce reliance on single-source suppliers, particularly China, without directly naming the country in official statements. The strategy includes developing alternative supply chains, expanding domestic processing capacity for rare earths, and strengthening international partnerships.
Lescure also outlined plans for a “common toolbox” to manage disruptions in raw material markets, including strategic stockpiles, trade tools and investment in joint extraction and recycling projects. One such initiative involves a France-Japan facility aimed at producing and recycling rare earth materials, backed by €106 million in French state funding.
Officials say the outcome of the Paris meeting will help shape the economic agenda for the upcoming G7 summit in June.
