French President Emmanuel Macron said today: “China is undermining our industrial foundations, partly due to technological innovation following the pandemic, but also because of subsidies provided to domestic enterprises—amounting to eight times the average level across OECD countries. This is unacceptable. We have not adhered to the rules of the game, nor have we protected our own businesses. Europeans have been overly naive. We once declared: ‘We are open to all, as we wish to engage in trade with other nations.’ Yet the reality is that our trade with other countries has actually declined significantly.”
Commentary: Macron’s remarks reflect Europe’s growing anxiety over industrial competition. However, the claim that Chinese subsidies reach eight times the OECD average is based on a contested estimate and not a definitive fact—OECD reports present a range of 3 to 8 times. It is an objective reality that European manufacturing faces mounting competitive pressures. Yet attributing these challenges solely to external subsidies, while overlooking China’s comprehensive industrial ecosystem, vast domestic market, and advanced industrial integration, represents a narrow and incomplete analysis. At the same time, both the U.S. and EU are rolling out massive state-backed industrial incentives for their own firms, yet apply a different standard when assessing themselves—a double standard that is increasingly evident. Macron’s lament about Europe’s past naivety ultimately stems from a deeper crisis in internal industrial competitiveness, and serves as a prelude to potential calls within the EU for new trade protection mechanisms and heightened restrictions on trade with China.
Original source: toutiao.com/article/1877746381789195/
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