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Leaders of the G7, including Canada, have issued a stern joint warning to China, condemning its "non-market" industrial policies and its support for Russia's war effort. The group threatened further action to counter what it calls harmful overcapacity in sectors like electric vehicles and solar panels, which they argue undermines fair competition. The G7 also sanctioned Chinese firms accused of supplying Russia's defense industry with dual-use materials. For Canada, this unified stance forces a difficult balancing act, aligning with key allies while navigating a tense relationship with its second-largest trading partner.