The Prime Minister said China was the "only country with both the means and intent to reshape the world order".

But he added that Britain and other G7 countries would pursue a common approach to reduce the challenges, rather than "de-coupling".

Mr Sunak was speaking to reporters at the end of a summit of the Group of Seven nations held in Japan and largely dominated by Ukraine.

"China poses the biggest challenge of our age to global security and prosperity, they are increasingly authoritarian at home and assertive abroad," he said.

"This is all about de-risking, not de-coupling."

When asked to clarify the phrase, he added: "We will work together as the G7 and other countries make sure that we can de-risk ourselves and the vulnerability of supply chains that we have seen from China, take the steps necessary to protect ourselves against hostile investment and do so in a way that doesn't damage each other."

On Saturday, China was also urged to put pressure on Russia to end its war on Ukraine.

In a joint statement, the G7 leaders emphasised they did not want to harm China and were seeking "constructive and stable relations" with Beijing.

"We call on China to press Russia to stop its military aggression and immediately, completely and unconditionally withdraw its troops from Ukraine," said the statement.

What else happened during the G7 summit?

The three-day gathering saw Ukrainian President Volodymyr Zelenskyy huddled with some of his biggest backers at the meeting, hoping to add momentum to his country’s war effort against Russia.

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Mr Zelenskyy held two rounds of meetings on Sunday, one with G7 leaders and a second with the group and a host of invited guests, including India, South Korea and Brazil.

The Ukrainian president also held one-to-one talks with US President Joe Biden, who during the summit paved the way for Western allies to give F-16 fighter jets to Ukraine.

The US president also announced a $375m package of military aid to Ukraine, including artillery and armoured vehicles - and told Mr Zelenskyy the US was doing all it could to strengthen his country's defence against Russia.

"We have Ukraine's back and we're not going anywhere," Mr Biden said.

Other leaders also echoed that sentiment of solidarity with Kyiv, ensuring their support for as long as needed.

Mr Sunak added: "We will stand with Ukraine as long as it takes because their security is our security.

"We have made a real breakthrough at this summit, thanks to President Biden's support for an international coalition to provide F-16 jets.

"Any peace settlement must be on Ukraine's terms."

Mr Sunak said training for pilots to successfully fly F-16s will begin this summer.