Macron threatens China with tariffs to protect European industry
In a notable escalation of the European tone towards Beijing, French President Emmanuel Macron hinted at the possibility of the European Union imposing punitive tariffs on Chinese products in the coming months, if China does not take concrete steps to address the large trade imbalance between the two sides.
Macron’s remarks came in an interview with the French economic newspaper Les Echos following his return from an official visit to China, where he presented Beijing with two options: either amend its trade practices or face European protectionist measures similar to those taken by the United States.
Between the American hammer and the Chinese anvil
The French president explained that Europe finds itself today in a precarious position between the two superpowers. On the one hand, the United States (from the Trump era to the current administration) continues to impose high tariffs and protectionist policies, while on the other hand, China possesses a massive surplus in production.
Macron pointed out that US protectionist policies have had a counterproductive effect on Europe, causing a “redirection of Chinese trade flows” that were going to America to flood European markets instead, putting European products under unfair competitive pressure.
An existential threat to European industry
In a precise description of the situation, Macron considered it a “matter of life or death” for European industry. The French president believes that China is directly targeting the core of the European industrial model, specifically vital sectors such as the automotive industry, machinery manufacturing, and technological innovation.
This warning comes at a time when European markets are witnessing an influx of Chinese government-subsidized electric cars, threatening the dominance of traditional European car companies, which previously prompted the European Commission to open investigations into Chinese government subsidies.
Mutual investment as a lifeline
As an alternative to a trade war, Macron proposed a vision based on boosting Chinese direct investment within Europe, rather than simply exporting to it. He stated clearly: “We cannot keep importing; Chinese companies must come and manufacture in Europe.”.
Macron identified around 10 strategic sectors in which China could invest to help reduce the trade deficit, most notably:
- Battery manufacturing and lithium refining.
- Electric vehicles and photovoltaic energy technologies.
- Wind energy and heat pumps.
- Industrial robots and consumer electronics.
Macron concluded his remarks by emphasizing a key condition for these investments: they must not be “exploitative” or aimed at imposing hegemony and dependency, but rather they must contribute to creating an economic balance that preserves the sovereignty of European industrial decision-making.
