China stocks ended lower on Tuesday, as tensions between Beijing and the West soured investor sentiment after G7 leaders took the Asian nation to task over a range of issues, which China called a gross interference in the country’s internal affairs.

The blue-chip CSI300 index ended 1.1% lower at 5,166.56, while the Shanghai Composite Index slipped 0.9% to 3,556.56.

The G7 leaders on Sunday scolded China over human rights in the heavily Muslim region of Xinjiang, called for Hong Kong to keep a high degree of autonomy and underscored the importance of peace and stability across the Taiwan Strait – all highly sensitive issues for Beijing.

NATO leaders warned on Monday that China presents “systemic challenges,” taking a forceful stance towards Beijing in a communique at U.S. President Joe Biden’s first summit with an alliance that former president Donald Trump openly disparaged.

Shares in China’s Belt and Road-related companies dropped after the G7 leaders sought to counter China’s growing influence by offering developing nations an infrastructure plan that could rival President Xi Jinping’s multi-trillion-dollar Belt and Road initiative.

Among the worst-performing sectors, the CSI300 Real Estate Index and the CSI A-share resource industries slumped 2.5% and 2.6%, respectively.

Shares of developers retreated after state media warned speculators that China’s housing prices would inevitably enter a cycle of slow growth.

This round of real-estate regulations has entered into an in-depth stage and the (market) would be dampened to some extent for the short term, the China Real Estate Business said in an article titled “It’s time for house speculators to give up illusions”.

Money inflows from institutional investors had been limited in the past weeks, while foreign inflows via the Stock Connect slowed, CITIC Securities noted in a report.

Investors via the Stock Connect linking the mainland and Hong Kong sold a net 2.5 billion yuan ($390.52 million) worth of A-shares on Tuesday, according to Refinitiv data.