Economic Security and Resilience Review
Date: July 05, 2025
This month’s ESRR looks at some of the key issues discussed at this year’s summit of G7 countries held in Kananaskis, Canada from June 15-17, 2025. Normally, this annual event sees the advanced Western economies closing ranks, but divisions among them resulted in a failure to issue the customary joint communique. Nor was there any mention in the Chair’s summary of the Reciprocal Tariff Plan of President Trump which has had world-wide impact. Trump himself cut short his participation at the G7 summit to attend to the crisis in West Asia. The summit, however, resulted in a few joint statements on some priority economic areas like critical minerals, AI and Quantum technology.
PM Modi was once again invited to participate in the outreach segment of the G7 summit, and addressed the summit on energy security, diversification, infrastructure and technology issues. His bilateral meeting with his Canadian counterpart resulted in both sides agreeing to take steps towards restoration of normal ties and enhancing collaboration in a number of areas, including the revival of stalled bilateral FTA negotiations.
Trade and economic relations between the EU and China are under strain, and President Ursula von der Leyen referred to the new ‘China shock’ at the G7 summit, drawing a sharp rebuke from China. Nevertheless, the EU-China summit is being scheduled from July 24-25.
The US and China appear to have arrived at some temporary ‘truce’ after their high level representatives met in London from June 10-11,resulting in a framework agreement that set out the terms of the earlier deal the two sides had arrived at in May. While details are awaited, China will now ease its export controls on magnets and critical minerals for the US, while the US will allow exports of some semiconductors and software design machinery to China.
China’s restrictions in respect of export of critical minerals and magnets as also fertilisers are adversely impacting India, with no immediate resolution in sight. At Foreign Secretary-level talks held in Delhi from June 12-13, the two sides agreed to hold certain functional dialogues, including in the economic and trade areas, to discuss and resolve specific issues of concern.
Intensive engagement between Indian and US trade negotiators continued during the month for striking a deal on an early tranche of an eventual bilateral trade agreement. From reported accounts, they seemed close to the finish line, even as some challenges remained.
To read this issue of the ESRR, Vol. III, Issue 6, please see the PDF attached
PM Modi was once again invited to participate in the outreach segment of the G7 summit, and addressed the summit on energy security, diversification, infrastructure and technology issues. His bilateral meeting with his Canadian counterpart resulted in both sides agreeing to take steps towards restoration of normal ties and enhancing collaboration in a number of areas, including the revival of stalled bilateral FTA negotiations.
Trade and economic relations between the EU and China are under strain, and President Ursula von der Leyen referred to the new ‘China shock’ at the G7 summit, drawing a sharp rebuke from China. Nevertheless, the EU-China summit is being scheduled from July 24-25.
The US and China appear to have arrived at some temporary ‘truce’ after their high level representatives met in London from June 10-11,resulting in a framework agreement that set out the terms of the earlier deal the two sides had arrived at in May. While details are awaited, China will now ease its export controls on magnets and critical minerals for the US, while the US will allow exports of some semiconductors and software design machinery to China.
China’s restrictions in respect of export of critical minerals and magnets as also fertilisers are adversely impacting India, with no immediate resolution in sight. At Foreign Secretary-level talks held in Delhi from June 12-13, the two sides agreed to hold certain functional dialogues, including in the economic and trade areas, to discuss and resolve specific issues of concern.
Intensive engagement between Indian and US trade negotiators continued during the month for striking a deal on an early tranche of an eventual bilateral trade agreement. From reported accounts, they seemed close to the finish line, even as some challenges remained.
To read this issue of the ESRR, Vol. III, Issue 6, please see the PDF attached
