G7 leaders said at a summit in Japan on Saturday that they want to build "constructive and stable" relations with Beijing.

In a final communique issued in Hiroshima, the grouping of Western powers plus Japan laid out concerns over aspects of relations with China, but stressed a desire for engagement and co-operation with the world's second largest economy.

"We stand prepared to build constructive and stable relations with China, recognising the importance of engaging candidly with and expressing our concerns directly to China," the group said.

"Our policy approaches are not designed to harm China nor do we seek to thwart China's economic progress and development," the statement continued, adding that the G7 countries are not "decoupling or turning inwards".

The message also alluded to unresolved trade and diplomatic disputes with China, however.

"Economic resilience requires de-risking and diversifying," the communique said, with the bloc pledging to "reduce excessive dependencies in our critical supply chains".

It went on to criticise what it called "militarisation activities" by China, adding that "peace and stability" in the Taiwan Strait are "indispensable" to global security. (Agencies)