The G7 summit in Évian-les-Bains, France, concluded with leaders endorsing measures to secure global capital flows and project military power, while offering limited proposals to address the deepening contradictions of the international economic order. Among the key outcomes, the G7 welcomed a deal with Iran set to lift U.S. sanctions on Iran’s oil exports and related industries, alongside the creation of a $300 billion reconstruction fund. U.S. President Donald Trump praised the agreement, stating, “There is nothing as smart as the market and the market loves it,” and warned that failure to strike a deal would have meant “the strait [of Hormuz] would never have been opened,” threatening global trade routes essential for capital. Trump also noted that the price of oil per barrel had fallen to $72 and would soon fall below its pre-war level.
Securing Global Capital
The G7 leaders also committed to additional support for Ukraine, now in its fifth year of conflict, agreeing to increase the delivery of air defense capacities, additional systems, interceptors, and long-range capabilities. The group indicated readiness to consider extending licenses to Ukraine to increase its military production, further entrenching the military-industrial complex. The joint statement committed the G7 to intensifying pressure on the Russian war economy through strengthened sanctions, including those targeting the oil and gas sectors, and pledged support for Ukraine through the coming winter. French President Emmanuel Macron noted “unprecedented convergence” among G7 leaders on maintaining support for Ukraine, signaling a unified front for continued economic and military engagement. Regarding Iran, the G7 statement welcomed the deal but immediately called for a “follow-on agreement” to rein in Iran’s ballistic missile program, which was not directly addressed in the initial memorandum of understanding due to be signed 2 days from now. The leaders also endorsed a multinational, independent, and defensive initiative led by France and the UK to facilitate maritime traffic in the Strait of Hormuz, asserting the “right of transit passage without restrictions or tolls” as a “bedrock of international trade.” Trump explicitly threatened military action against Iran, stating he would “go back to dropping bombs right smack in the middle of their head” if Iran misbehaved, underscoring the role of military force in securing capital's interests. He also encouraged investment in Iran by other nations, clarifying, “Anyone who wants to can invest. What do you expect me to say, no one is allowed to invest? But we’re not investing; we’re not putting up even 10 cents.”
The Cost to Labor
The summit also confronted global trade imbalances, with AP reporting China's global trade surplus of $1.2 trillion last year. Chinese exports to the 27-nation EU climbed 16.4% from January to May compared to a year earlier, while France’s trade deficit with China rose from $3.3 billion to $5.3 billion in the same period. French President Emmanuel Macron previously warned that Chinese exports were “literally killing a large part of the European industry,” highlighting the direct impact on European workers and productive capacity. In the United States, Chinese goods exports to the U.S. dropped 37% from January through April this year compared with the same period of 2025, yet economists David Autor, David Dorn, and Gordon Hanson found that competition from China had already led to the loss of 2.4 million American jobs. Eswar Prasad of Cornell University described a “second China shock” characterized by Chinese companies dominating manufacturing exports across all tech levels, directly impacting advanced economies. The G7 leaders' statement proposed that “Countries with large and persistent external surpluses should strengthen domestic sources of growth,” suggesting policies like “lifting constraints on private demand growth” and “improving social safety nets” – reforms that manage symptoms without challenging the underlying drive for surplus extraction. Maurice Obstfeld of the Peterson Institute warned that China’s export surge “will provoke a protectionist wave against Chinese imports worldwide,” indicating a coming struggle over market share among global capital blocs.
Imperial Realignments
Discussions also centered on artificial intelligence, with Europeans seeking checks on American dominance and pushing for “sovereign computing power,” revealing inter-imperialist competition for control over emerging technologies. NATO Secretary-General Mark Rutte addressed the Trump administration’s decision to scale back military assets provided to allies in a crisis, with the Pentagon informing NATO allies 14 days ago that it would no longer supply an aircraft carrier, support ships, aerial refueling planes, and dozens of fighter jets, among other military assets. This shift reflects a re-prioritization of U.S. military power, focusing on “potential threats elsewhere, notably from China in the Indo-Pacific region,” as capital's interests dictate the deployment of imperial garrisons. NATO’s top commander, U.S. Gen. Alex Grynkewich, asserted that other allies possessed or would soon acquire capabilities to fill the U.S. shortfall, ensuring continued military readiness for global interventions. The summit also saw NATO military headquarters announce a reduction of over 1,000 personnel from its security force in Kosovo, where KFOR began deploying in 1999 to maintain stability, with 1,000 additional troops deployed in 2023 after fresh violence.