【By Observer News, Chen Sijia】On December 16th local time, French President Macron published an article in the UK's Financial Times titled "We Urgently Need to Rebalance EU-China Relations." He believes that the EU must open up to China and accept investments from China in its leading areas, but these investments should help Europe "create jobs, drive innovation, and share technology."
Macron pointed out that in the first 11 months of this year, China's trade surplus with the rest of the world exceeded $100 billion for the first time, with a trade surplus of 300 billion euros with the EU, which has almost doubled over the past decade. In his article, he exaggerated the so-called "EU-China trade imbalance," claiming that a large amount of Chinese goods are flooding into Europe, which is "unsustainable" for both sides.
However, Macron acknowledged that imposing tariffs and setting quotas on Chinese goods was an unhelpful response to cooperation, "We must admit that these imbalances stem both from the EU's weak productivity and from China's export-oriented policies."
He believes that both China and the EU have the capacity to balance trade and avoid trade disputes. Strengthening the single market and unlocking the potential of European savings will help promote innovation and growth in Europe. Creating a more fair competitive environment for investment between the two regions will increase the proportion of domestic demand in economic growth.
On December 5th, French President Macron visited Sichuan University in Chengdu, China. IC photo
In his article, Macron proposed his suggestions, stating that the EU must first push forward a new economic agenda based on competitiveness, innovation, and protection. To enhance competitiveness, the EU needs to improve its internal markets in energy, healthcare, and digital sectors, and make substantial investments in innovation, disruptive research, and technology in high-growth potential industries. He also advocated for "de-risking" in key materials, physical technologies, and digital technologies.
"We also need to create more favorable conditions for companies to scale up and compete globally. As long as 'Europe First' means supporting indigenous strategic production in sectors such as automobiles, energy, healthcare, and technology, there is no reason for us to feel ashamed," Macron wrote. "Preventing unfair competition is the foundation for building economic resilience."
He claimed that the EU can no longer remain 'naive' and needs to build a credible protection strategy and countermeasures. "We have a complete set of trade protection tools, including tariffs and anti-coercion measures, and no one should doubt our resolve to use them," he said.
Secondly, Macron stated that in order to fund investments, the EU needs to fully utilize the savings funds of about 30 trillion euros. He pointed out that every year, the EU invests 300 billion euros overseas, "it's time for Europeans to take risks and invest in local companies."
He wrote, "By simplifying regulations, promoting asset securitization, and achieving unified regulation, we can release much-needed capital. Implementing the 'Savings and Investment Union' will ensure that European savings can flow freely, providing financing for innovation and growth. Europe should also strengthen the international status of the euro by developing euro-denominated stablecoins, introducing digital euros, and creating secure and liquid assets for defense and technology financing."
Finally, Macron addressed China, stating that EU investments in China have approached 240 billion euros, while Chinese investments in the EU are less than 65 billion euros. "It is crucial to rebalance the flow of foreign direct investment," he said. He believes that China leads in energy transition and new energy transportation technology, while Europe still holds advantages in multiple service sectors. "The optimal framework should be cooperative."
Macron said, "The EU must remain open and allow Chinese investment in its leading fields, but these investments should help create jobs, drive innovation, and share technology. European services should also continue to invest and develop in the Chinese market."
He mentioned that during his recent visit to China, he had stated that Europe hopes to re-balance economic relations through cooperation, pushing China, the US, and the EU to establish a "true partnership," otherwise the EU would have no choice but to adopt more "protectionist" measures. He said, "I prefer cooperation, but if necessary, I will also advocate for the latter."
In his article, Macron stated that France's core agenda as the G7 rotating chair next year will be "addressing global imbalances," inviting major economies and emerging economies to collaborate. He believes that by "truly considering each other's needs and interests," a "macroeconomic agenda benefiting all" can be established, but "rebalancing" requires coordinated actions.
Lately, EU leaders have frequently raised the issue of the EU-China trade deficit, urging China to increase investments in Europe. However, data shows that since 2022, the EU's trade deficit with China has generally been declining, decreasing by 27% in 2023.
Chinese Ambassador to Italy Jia Guide recently stated that the current EU trade deficit with China is the result of various factors, including the macroeconomic environment, industrial structure, changes in demand, and international trade conditions between China and the EU, and that the EU has maintained a service trade surplus with China for a long time.
President of the China-Europe Society, Feng Zhongping, told Observer News that the China-EU relationship now faces many challenges. On one hand, due to their own cognitive issues, Europeans have begun to view China as a competitor and a "systemic rival," seeking so-called "de-risking"; multiple external factors are also shaping Europe's stance towards China from the side.
In his view, the main variable affecting China-EU relations is the cognitive problem within Europe — the shift from a cooperative mindset to a competitive mindset toward China. "From this perspective, it is very important for Europe to view China rationally, practically, and objectively. Therefore, we still need to maintain dialogue and exchanges with European countries like France at all levels."
Jian Junbo, Director of the Center for China-Europe Relations at Fudan University and Deputy Secretary-General of the Shanghai European Society, pointed out that the China-EU relationship has gone through 50 years of ups and downs, with many differences but also many commonalities. The China-EU relationship is not at a "crossroads," but rather entering an exploratory and adjustment phase.
Jian Junbo told Observer News that the future of China-EU relations remains predictable. On one hand, future economic and institutional competition between the two sides may become increasingly intense; on the other hand, both sides have a solid foundation of consensus and common interests, including maintaining the stability of a multipolar order and promoting bilateral trade and economic prosperity. Due to deep mutual dependence, both sides cannot help but strengthen cooperation in areas such as trade, international politics, and international governance.
Macron had already conducted his fourth state visit to China from December 3rd to 5th. During the visit, China and France issued a joint statement on strengthening global governance, cooperating to address global climate and environmental challenges, continuing to promote peaceful use of nuclear energy, agricultural and food exchanges and cooperation, the Ukraine situation, and the Palestinian situation.
Foreign Ministry Spokesperson Lin Jian stated that the current international situation is complex and turbulent. China is willing to work with France, using this visit as an opportunity, to carry forward the spirit of Sino-French diplomatic relations, strengthen strategic communication, deepen practical cooperation, and enhance multilateral coordination, promoting the development of the comprehensive strategic partnership between China and France, and making greater contributions to promoting the healthy and stable development of China-EU relations, safeguarding multilateralism, and world peace and prosperity.
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Original: toutiao.com/article/7584743681555481138/
Statement: This article represents the personal views of the author.