NATO leaders designated China as presenting "systemic challenges" in a summit communique on Monday that marked a forceful stance for the Western military alliance, declared a priority for President Joe Biden.

In a diplomatic victory for Biden, who has urged his fellow NATO leaders to stand up to China's authoritarianism and growing military might, the final statement branded China a security risk to the Western alliance.

The language, which will now set the path for alliance policy, comes a day after the Group of Seven rich nations issued a statement...