In an interview with French business daily Les Echos after a three-day visit to France, French President Macron said that unless China changes its trade policy, countermeasures may be taken against China.
“I tried to explain to the Chinese that their trade surplus is unsustainable because they are eliminating their own customers, especially not importing much from us anymore,” Macron said.
“I told them that if they did not respond, we Europeans would be forced to take tough measures and scale down our cooperation in the coming months, following the example of the United States, such as imposing tariffs on Chinese products.”
China is France’s most important trading partner in Asia, but the French economy has a significant trade deficit with China, with imports far exceeding exports. In 2024, the deficit will total more than 46 billion euros ($53.5 billion).
For the EU as a whole, the trade deficit exceeds 300 billion euros. Weak demand from China is a problem for German, French and other EU companies, where China is increasingly selling products to the bloc due to its trade dispute with the United States.
Macron said that China is hitting the core of European industry and innovation models. U.S. protectionism has exacerbated the situation, as Chinese goods flows have been diverted to European markets.
He said Europe was caught in the middle and the survival of its industry was at risk. “We have become a market that adjusts and this is the worst-case scenario.”
Macron called on China to increase consumption and open up its domestic market. He said Chinese companies should also come to Europe, just as energy group EDF and aircraft maker Airbus did 25 years ago to establish sales markets on the continent.
“We recognize that they are excellent in certain areas, but we cannot import them permanently,” the French president said, referring to the battery industry, electric vehicles and lithium processing, according to Les Echos.
“Chinese investment in Europe must not be predatory,” he told the newspaper, pointing out that Beijing must not aim to create dependence.
At the same time, he said Europe should improve its competitiveness, simplify processes, invest in innovation and deepen the single market. Macron urged both sides to end aggressive policies such as export restrictions.