French media: The EU faces a 'life-or-death' challenge and should emulate China's industrial policy

The French newspaper Le Monde published a long article on Monday, focusing on the situation where Chinese products are shifting to the European market due to the US-China tariff war.

New wave of impact may be even more intense

The newspaper stated that in recent years, the intensification of Sino-US trade friction has led to a large number of Chinese industrial products that were originally sold to the United States being redirected to the European market. This summer, China's exports to the EU increased by nearly 10%, triggering concerns among European sectors, with many people beginning to talk about Europe suffering a "second Chinese shock".

Because Chinese products are no longer limited to low-end manufacturing, China has rapidly risen in high-tech and strategic industries such as artificial intelligence, green energy, and defense. European industry is worried that if the EU does not take effective measures, its remaining industrial base will be further eroded.

The main countries of entry for Chinese products into the EU are the Netherlands. After entering the EU through Rotterdam port in the Netherlands, Chinese products are then distributed to countries such as Germany, France, and Italy. Almost all industries in the EU are affected: including electronic components, chemicals, home appliances, electric vehicles, solar panels, wind turbines, furniture, textiles, toys, etc. The growth of Chinese products imported into France is particularly significant: medicines have surged by 125%, while electronic equipment, transportation tools, and textiles have all shown double-digit growth.

The EU faces a 'life-or-death' challenge

Le Monde stated that the European Commission is not without action. But the problem is that the EU's measures require consultation among 27 countries, which is time-consuming and delayed. For example, the EU's new steel regulations are expected to be officially announced only in October this year. The European business community criticized the EU for "only discussing but acting slowly." In comparison, the US and China are better at mobilizing capital and policies to protect their supply chains, putting Europe in a passive position.

In the policy debate, two ideas have emerged within the EU: one is stronger protectionism, promoting a "Europe-first" policy, concentrating public procurement and subsidies on key domestic industries; the other is exploring a cooperative model, such as learning from China's early strategies, and now, in reverse, allowing Chinese capital and technology to land in the EU, through joint ventures with Chinese companies to require technology transfer, benefiting European employment and R&D. The Jacques Delors Institute think tank advocated that if Chinese capital can be guided to set up factories in Europe, cooperating in areas such as automobiles and batteries, it could enhance Europe's competitiveness. However, the reality is that EU member states compete with each other, offering higher subsidies to attract Chinese investment, without being able to unify rules to require technology transfer from China.

Former European Central Bank President Draghi warned that the EU is facing a "life-or-death" challenge, and the situation has become more severe over the past year: since the end of 2024, China's trade surplus with the EU has increased by nearly 20%. If not acted quickly, Europe may face long-term industrial hollowing out and economic dependence.

Original text: www.toutiao.com/article/1844024147298316/

Statement: This article represents the views of the author.